Jobaaj Stories
Shares of Revlon Inc. jumped over 90% as news sites reported that Mukesh Ambani was considering buying the distressed company.
Revlon Inc. is an American multinational company that deals in cosmetics, skincare, personal care, and fragrances. The company began operations in March 1932 when its founders created a unique nail enamel using pigments instead of dyes.
Shriram Group's merger approved by RBI, read more.
By 1940, the company had become a multimillion-dollar company and had launched its entire line of manicure products and added lipstick to its product portfolio. Today, the company manages 6 major brands: Revlon, Elizabeth Arden, American Crew, Almay, Juicy Couture & CND whose products are sold in 150 countries.
In recent times the company wasn't performing up to the mark as it was facing severe competition. New entrants, especially socially active celebrities, who launched their own beauty and cosmetics brands, were outperforming the company. The company kept piling on debt as its operations were severely hurt by the pandemic with sales dropping to the tune of 21%.
Some reports suggest that the company almost went bankrupt during the pandemic but the same could not be confirmed. The company had reported net losses of $206.90 million in FY21, while its total debt as it filed for bankruptcy stood at $3.7 billion. The company reported a net loss of $67 million for Q1FY22.
Revlon Inc had listed on the NYSE in February 1996 at a price of $24 per share. In February 2022, the stock breached the $10 mark and fell. On 10th June 2022, it was reported that the company was preparing to file for bankruptcy which led to a 52% decline in the stock as it closed at $2.05 per share. On 16th June, when the company officially announced that it was filing for bankruptcy, the share fell below $2.
"Today's filing will allow Revlon to offer our consumers the iconic products we have delivered for decades while providing a clearer path for our future growth,” said Revlon's President and CEO, Debra Perelman.
However, investors jumped on to buy the share when it was reported on 17th June that Indian billionaire Mukesh Ambani-led Reliance Industries was considering buying the company. The same news could not be verified but investors turned bullish toward the stock anyways. The stock jumped 20% in premarket trade and surged a massive 91.28% to close at $3.73 per share.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
