Revlon Plunges After Report It’s Preparing Bankruptcy Filing (1)

Revlon Inc. plunged 53%, the biggest one-day drop on record, after distressed debt news outlet Reorg reported that the cosmetics empire is preparing to file for bankruptcy.

The company, controlled by billionaire Ronald Perelman, could file as soon as next week, Reorg said, citing unnamed sources. Revlon shares triggered multiple trading halts Friday because of the volatility, closing at $2.05 in New York.

A representative for Revlon didn’t comment.

New York-based Revlon has struggled to remain relevant and stem falling sales amid competition from Estee Lauder Cos. and a host of smaller companies using social media to lure ...