American cosmetics major Revlon Inc. will be ceasing operations in China as it restructures its struggling business. The shutdown will eliminate about 1,100 positions, including 940 beauty advisers.
Economic Times, citing Revlon's filing with the US Securities and Exchange Commission, noted that China makes up about 2% of the cosmetic company's net sales. The restructuring will result in about $22 million of pre-tax charges.
Revlon in a statement said the changes are expected to reduce costs by $11 million a year. It has posted profit declines in 2011 and 2012, the report said. The publicly-traded personal care company has been making acquisitions and introducing new products as sales in some of its larger brands had been slowing down, the report added.
Earlier last year, Revlon bought Spanish beauty care company Colomer Group for $660 million in cash, according to a report by the Wall Street Journal. The said acquisition gave the company access to Colomer's Creative Nail professional and Shellac nail polishes, as well as American Crew men's haircare products, Economic Times said.
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