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Abbott baby formula factory down after storm, Revlon files for bankruptcy, WWE probes CEO settlement

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Yahoo Finance's Julie Hyman breaks down leading business headlines on the baby formula shortage, Revlon, and the WWE.

Video Transcript

[MUSIC PLAYING]

JULIE HYMAN: Some other headlines we're watching right now, baby formula production in an Abbott Laboratories plant in Michigan has, again, been halted, this time after thunderstorms flooded the facility. That delay is set to exacerbate that nationwide formula shortage that production at the Michigan plant was meant to relieve. Abbott has recently been under scrutiny over allegations it knew about facility issues that could potentially have averted an earlier shutdown. Of course, the plant's problems have contributed to that baby formula shortage in the US. That plant supplies roughly 1/5 of the US market supply of formula.

Revlon has filed for bankruptcy. The cosmetics maker was not able to manage its debt load. It failed to keep up with rivals that had capitalized on a social media advertising boom. Revlon, which is owned by billionaire Ron Perlman, saw its woes worsened by supply chain issues, and more recently, by rising inflation. The company has avoided bankruptcy a couple of times, previously keeping itself out of default through deals with creditors, which included an incident where Citigroup mistakenly paid creditors nearly $900 million.

And Wrestling Entertainment company WWE is investigating a, allegedly, secret $3 million settlement paid out by CEO Vince McMahon to hide an affair with a former employee. That's according to "The Wall Street Journal." The employee was reportedly hired as a paralegal in 2019 and left after signing a separation agreement barring her from discussing the relationship. A spokesperson for the group told the "Journal" the affair was consensual. McMahon has helmed the WWE since 1982. And he's married to Linda McMahon, who was the WWE's former CEO. She is now a political advisor. Guys.