Updated at 3:46 pm EST
The Wall Street Journal reported late Friday that the group began talks with lenders last week in order to explore way to reduce or restructure its $4.3 billion in debts. The Journal said a Chapter 11 filing could happen as soon as this week.
Last month, the group said it was hoping to "ensure sufficient liquidity to support both our growth and our capital structure" as it faced supply chain headwinds and other "emerging macroeconomic challenges that continue to impact businesses across most industries."
Revlon posted an 8% rise in net sales, to $445 million, for the three months ending in March, and swung to a modest operating profit of $24 million thanks to improving gross margins and lower restructuring charges.
Revlon said it had around $70 million in cash as of the end of March, with access to $65 million in borrowing capacity under a 2016 credit facility,
"While consumer demand for Revlon's products remained strong throughout the quarter, supply chain challenges are putting pressures on our ability to meet this demand," CEO Debra Perelman told investors on a conference call on May 7. "Lack of availability or long lead times for raw materials and components, along with shortages and delays across all modes of transportation, are resulting in reduced supply to support the demand."
"Additionally, we are faced with rising costs due to global inflation putting pressures both on consumers' wallets as well as on our margins," she added.
Revlon shares, which collapsed 52.8% on Friday, were marked a further 46.8% lower Monday to change hands at $1.09 each, a move that would extend the stock's year-to-date decline to around 91%.
Revlon had a market cap of $1.4 billion in October of 2019, today's move would peg it at around 59 million.