Last week, the iconic Revlon makeup logo filed for Chapter 11 bankruptcy. The reasons for the presentation were innumerable and included the development of debts, a larger festival of good-looking logos backed by celebrities, problems with the source chain, and the slow and continuous death of the US. U. S. mall.
Since the beginning of 2022, Revlon’s inventory has collapsed. On Jan. 3, the inventory was worth $11. 66 according to the stake. But on June 16, when Revlon announced it would file for Chapter 11 bankruptcy, inventory cost just $1. 95 consistent with participation.
However, since the announcement of its bankruptcy filing, Revlon’s inventory has increased. While still well below its January highs, the company’s inventory closed at $6. 06 consistent with yesterday’s constant percentage, a triple buildup since the bankruptcy filing was announced and 62% building on the consistent withcentage value on a single day.
And at the time of writing, Revlon’s (NYSE: REV) inventory has increased 32% in premarket trading to more than $8 in line with the stock.
Why has Revlon’s inventory nearly quadrupled since it announced bankruptcy last week?The consensus turns out to be that investors believe revlon will most likely be acquired through some other company because of its relatively low inventory price. As Zacks points out, reports recommend that Reliance Industries Limited is interested in an imaginable acquisition. Reliance Industries is a foreign conglomerate founded in Mumbai, India. It has interests in everything from petrochemicals to retail.
Of course, any potential buyback offer has yet to materialize, and if no bid is made, Revlon’s inventory may cancel out the profits it made this week as temporarily as it made them.