Revlon (Twitter)
Retail investors dashed into Revlon Inc again on Tuesday as a stronger appetite for risky assets led to a more than 30-fold jump in trading for the bankrupt cosmetics giant.
Revlon filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York last week.
Cosmetic company Revlon says none of its international operating subsidiaries are included in their decision last week to file for bankruptcy.
According to Bloomberg, Revlon was among the 10 most-traded assets on Fidelity’s platform Tuesday, with buy orders nearly matching sells.
The stock has attracted roughly $10 million in retail trader cash over the past week, with nearly $6 million pushed into the company on Friday alone, according to Vanda Research data.
Revlon says besides Canada and the UK their operations will continue seamlessly for the rest of their subsidiaries operating internationally.
The Chapter 11 filing will allow Revlon to strategically reorganize its legacy capital structure and improve its long-term outlook, especially amid liquidity constraints brought on by continued global challenges, including supply chain disruption and rising inflation, as well as obligations to its lenders.
Upon receipt of court approval, the Company expects to receive $575 million in debtor-in-possession financing from its existing lender base, which in addition to its existing working capital facility, will provide liquidity to support day-to-day operations.
In a statement issued on its website, Revlon said this move will allow them to offer consumers the iconic products they have delivered for decades while providing a clearer path for our future growth,
Revlon launched in 1932 and is considered one of the leading global beauty companies in the world.
