Revlon appoints interim CFO in bankruptcy process

Revlon Inc.

changes its senior financial officer about two months after filing for bankruptcy.

The New York-based cosmetics maker said on Tuesday that Matt Kvarda will be its interim chief financial officer starting Oct. 1. Revlon, owner of brands including Elizabeth Arden, Juicy Couture and Cutex, said current chief financial officer Victoria Dolan is retiring four years in the role. Ms. Dolan will remain with the company until September 30 to help with the transition.

The change in financial leadership comes as Revlon’s share price has rallied in recent weeks, prompting pressure from shareholders for more say in the bankruptcy process.

Mr. Kvarda assumes the role of interim chief financial officer of professional services firm Alvarez & Marsal Holdings LLC, where he serves as managing director. Mr. Kvarda, who has worked at Alvarez & Marsal since 2004 and specializes in restructurings, previously held acting chief financial positions at engineering services firm Team Inc. and spa manufacturer Jacuzzi Brands. Revlon will pay Alvarez & Marsal $165,000 per month for Mr. Kvarda’s services as interim chief financial officer, subject to bankruptcy court approval, according to a regulatory filing.

Neither Revlon nor Mr. Kvarda responded to requests for comment.

Revlon filed for Chapter 11 bankruptcy in June, blaming its troubles on supply chain disruptions, rising inflation and obligations to lenders.

Demand for Revlon products is strong, Revlon CEO Debra Perelman said in a statement at the time of the bankruptcy filing. “But our difficult capital structure has limited our ability to manage macroeconomic issues in order to meet this demand.”

Revlon shareholders last month said they wanted greater involvement in the bankruptcy process and asked the New York court to appoint a formal committee to represent their interests, noting in a Tuesday filing that the the company’s share price had “more than quadrupled in value”. over the past two months.

The company’s shares traded at $8 each Tuesday afternoon, down from under $2 just before the company filed for Chapter 11 protection. The stock price rise is similar to that of Hertz Global Holdings Inc.,

which saw its share price soar after filing for bankruptcy in 2020.

Revlon’s stock price movement provides “no credible argument” that the company is “hopelessly insolvent,” shareholders said in a Tuesday filing. Although Revlon may pass off the upside as disconnected from business performance, the company should not be able to “substitute its ‘guts’ for the free market,” shareholders said.

A hearing is scheduled for August 24 to hear whether a formal equity committee will be appointed, according to court records. The company won court approval this month to take out a $1.4 billion loan to emerge from bankruptcy.

Along with the change in chief financial officer, Revlon said on Tuesday that its second-quarter net sales fell 11% from the year-ago period to $442.6 million. The company reported a loss of $275.6 million for the quarter, compared with a loss of $67.7 million a year earlier.

Write to Jennifer Williams-Alvarez at [email protected]

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