Lukouvon applies for bankruptcy protection in the United States

The United States Luvonian announced on the 16th that the well -known cosmetics company has applied for bankruptcy protection to the Federal Bankruptcy Court of New York.

Trapped

Loaouumon was founded in New York 90 years ago. It has successfully created a number of popular beauty brands that have high popularity in the United States and international markets, such as Elmy and Elizabeth Arden.

On May 12, a lady was near the Times Square in New York, USA. Xinhua News Agency (Photo by Guo Ke)

However, since the 1990s, Louvon has gradually lost its advantage in the competition of chasing market trends. The market share has gradually been seized by large daily necessities such as Procter & Gamble. , Laouvon's post is weak, and the debt increased day by day.

According to the Associated Press, the influence of the new crown epidemic has also deepened the dilemma of Louvon: the mask becomes a "fashion single product", which has caused lipstick sales as a lipstick as a dragon leader.

Louvon's sales decreased by 21%in 2020 when the epidemic began to outbreak. Although the new crown vaccine rose 9.2%in 2021 in 2021, the increase in the first quarter of this year was nearly 8%, it was still far below the pre -epidemic level.

In recent months, the problem of global supply chain tensions caused by the epidemic and Ukraine crisis has plagued many multinational companies, and Louvon is overwhelmed.

Lvaron almost fell into a state of bankruptcy at the end of 2020, relying on the consent of the debtor's consent to extend the debt to avoid difficulties.

Once glorious

Deblason Preson President and CEO Della Perelman said on the 16th that once the court approves the company to quote the application for bankruptcy protection in Chapter 11 of the United States, it is expected to receive $ 575 million in financing from the existing lender, and In order to maintain daily operations, the iconic beauty products that continue to sell their "for decades for decades" will continue to be sold, which also pave the way for enterprises to grow in the future.

McAnderus-Forbes Holdings In 1985, he had a malicious acquisition of Luhuo Nong's income. Perreman's father's father injected capital as Luohua, and the latter was listed in 1996. She believes that the demand for Louvon products is still strong, but the "capital structure" problem has led to a small room room.

Except for Canadian and British subsidiaries, all subsidiaries operating outside the United States are not included in the application for bankruptcy protection.

Luvioon has a glorious history of leading the trend, including becoming the first cosmetics company to adopt black model endorsement advertising in 1970. In the 20th century, Louvon's beauty products were only second only to Avon. According to the list of beauty brands recently released by the Women's Daily, Louvon is now only 22nd in the industry.

The Associated Press reports that under the risk of US economic recession and increased loan costs, more companies may have more asset reorganization in the beauty industry. (Shen Min)

(Source: Xinhua News Agency client)

【Edit: Fu Sakura】

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