The fate of Revlon Inc is now uncertain as its owners are now looking for several options to keep the company on its feet.
The cosmetic maker’s largest shareholder, MacAndrews and Forbes said the company would explore options for the business.
Revlon is majorly owned by billionaire investor, Ronald Perelman. According to data compiled by Reuters, Perelman owns about 87% stake in Revlon, disclosed in an SEC filing that an external financial adviser has been retained to help in the efforts.
There are hints that Revlon’s major owner has entered talks with Goldman Sachs Group Inc., but there is no indication that any agreement was reached for a sale or loan deal.
A Bloomberg report which cited there was a discussion with Goldman Sachs made the company’s shares to jump as high as 17% and closed up 5.5% yesterday.
Reuters suggested in its report that Perelman could have suggested the strategic option which could include a stake sale after Revlon was battered by changing consumer preferences and intense competition from bigger rivals Estee Lauder and L’Oreal SA.