Revlon Inc. Chief Executive Fabian Garcia -- brought in less than two years ago to help revive the iconic beauty giant -- is leaving the company next month.
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The New York said Monday board member Paul Meister will take over day-to-day operations on a temporary basis, while Mr. Garcia, who also serves as president, stays on through the end of February to help with the transition.
Mr. Meister, who joined Revlon's board in 2016 and will now become executive vice chairman, is the president of MacAndrews & Forbes Inc., the investment firm run by Ronald O. Perelman, Revlon chairman and controlling shareholder.
Revlon also said one-time charges related to changes to the U.S. tax code drove its fourth-quarter loss to about $60 million to $80 million, compared with a loss of $36.5 million a year earlier. Sales were about $785 million, compared with $801 million a year earlier. Revlon is slated to release financial results on March 2.
Mr. Garcia, brought on in 2016 from Colgate-Palmolive Co. after a succession of CEOs failed to stem the company's market-share declines, led the $420 million acquisition of rival Elizabeth Arden -- a deal that expanded Revlon's presence in categories such as skin care and perfume but also added considerable debt.
Revlon's current debt load far exceeds its market capitalization, which stood at roughly $1.16 billion based on Monday's closing stock price, according to Thomson Reuters data.
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Mr. Perelman, who forged his reputation as a corporate raider, won the company in a 1985 takeover battle.
In 2009, he tried to take the company private, but the move backfired amid accusations that shareholders were misled. The matter was later settled.
On Monday, Revlon knocked down speculation about a potential asset transfer.
Credit-research firm Covenant Review recently said Revlon debt documents are "especially complicated" and give "great latitude" for Mr. Perelman to "manipulate the capital structure to boost shareholder value at the expense of creditors." Covenant Review said a move of intellectual property assets "in the J. Crew style may be the most feared possibility."
J. Crew Group Inc. averted bankruptcy last summer when it convinced most bondholders to do a debt swap that tapped the value of its brand name. The deal angered a few lenders, who saw the name stripped away from the collateral backing their loans.
"Contrary to false rumors and pure speculation in public reports, a material asset transfer is not being considered," said Chris Peterson, Revlon operating and finance chief, said in a statement.
Shares, down 34% over the past 12 months, rose 1.8% to $22.40 in after-hours trading.
Becky Yerak contributed to this article.
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(END) Dow Jones Newswires
January 29, 2018 20:02 ET (01:02 GMT)