(Reuters) – Revlon Inc, a cosmetics manufacturer, is preparing for Chapter 11 protection, according to the Wall Street Journal, citing sources familiar with the matter.

Revlon shares dropped 46% and did not respond immediately to Reuters’ request for comment.

Last week, the WSJ reported that lipstick company Lipstick Maker began negotiations with lenders to avoid bankruptcy due to looming debt maturities.

Revlon’s long-term debt was $3.31 Billion as of March 31st.

In recent months, demand has increased for makeup products as more people go out to buy them. Revlon is facing stiff competition from upstart digital brands in makeup products. In March, Revlon said it was experiencing supply chain problems that limited its ability to serve demand.

Reorg Research reported Revlon’s intention to file for bankruptcy.