As Revlon battles supply chain problems and a heavy debt load, the cosmetics giant is preparing to file for Chapter 11 bankruptcy as soon as next week, as told by people with knowledge of the matter. 

Distressed debt news provider Reorg first reported on the potential bankruptcy. Revlon’s shares plunged 53%, the biggest one-day drop on record, on Friday to close at $2.05. Talks around the potential filing aren’t final and could change, said the people, who asked not to be named discussing private negotiations.

New York-based Revlon, owned by billionaire Ron Perelman’s MacAndrews & Forbes, struggled amid competition from Estee Lauder Cos. and a host of smaller companies using social media to lure customers. Revlon’s sales had been declining years even before the start of the pandemic, which is also hitting the company hard. 

The brand has narrowly averted multiple defaults by cutting debt deals with creditors. Another source revealed that the company is talking with creditors and equity ownership of the firm is likely to change.

Revlon has more than 15 brands, including Elizabeth Arden and Elizabeth Taylor, which it markets in nearly 150 countries.