Today's business and finance round up 20th June 2022
Tesco customers feeling squeezed and buying less
20th June 2022
Bite-sized business news from the UK and beyond
Good morning Anyone travelling by rail this week is likely to face the biggest disruption from union strikes in a generation. Here’s a handy guide of which lines will be impacted and when.
Today's stories
Trading down: Tesco customers feeling squeezed and buying less
Out of fashion: Revlon files for bankruptcy after 90 years in business
RETAILTesco customers feeling squeezed and buying less
Other stories to keep you in the loop
Big pay rises could push prices up, says minister
Up to 20,000 people could get interest-free loan amid cost of living crisis
PwC UK partners to toast six-figure windfall from $2.2bn mobility sale
West End landlords plough ahead with £3.5bn London-focused merger deal
30-Year fixed mortgages may be coming to the UK
Magic Circle law firm lets lawyers bring dogs to the office
CONSUMERRevlon files for bankruptcy after 90 years in business
What happened?On Friday cosmetics giant Revlon filed for bankruptcy blaming too much debt and screwed up supply chains.Founded in New York in 1932, Revlon grew to be one of the biggest, and most forward thinking, makeup companies in the world. It was the first to feature a Black model and made household names of models including Iman and Cindy Crawford.But the company struggled to keep up with changing trends. Revlon broke through in the 1980s with splashy advertising and its line of bright lipsticks. But when cosmetics trends shifted to muted colours in the 90s, the company was slow to adjust. Revlon went from the world’s second-largest cosmetics company by sales to 22nd. The pandemic created another challenge for the business. The advent of widespread mask wearing meant lipstick sales dropped 21% in 2020.Competition also intensified with the emergence of a new generation of cosmetic brands. For decades, Revlon has sold most of its makeup in physical stores. But Millennials and Gen Z are now more likely to discover products on social media. Now Revlon is losing customers to the likes of online-first brands like Kylie Cosmetics, Glossier and Rihanna’s Fenty Beauty.The global supply chain issues created as the world came out of lockdown is the final nail in the coffin. Revlon products require up to 40 raw materials and components. A shortage in just a few of these means the company can’t fulfill a third of its orders.What next? By filing for Chapter 11 bankruptcy protection in the US Revlon will be able to continue to operate while it works out a way to repay its creditors. The company says it expects to receive $575m from its lenders to support day-to-day operations.
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