Bluefly, Revlon: What's Going On?

The other day, a Fashionista friend that works in finance told us, "I think Bluefly might be going out of business soon." We shrugged. Today, he told
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The other day, a Fashionista friend that works in finance told us, "I think Bluefly might be going out of business soon." We shrugged. Today, he told
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The other day, a Fashionista friend that works in finance told us, "I think Bluefly might be going out of business soon." We shrugged. Today, he told us, "I think Revlon might be going out of business, too." So we asked, "What's making you say this?" He gave us a really finance-y response, that went something like this: "Their stock is trading at an all time low, and the company has been in a free fall since last June. Typically when stocks trade below $2/share, they're deemed very high risk. Revlon needs the reverse stock split to maintain minimum price requirements maintained by the New York Stock Exchange - it's kind of a mask for their financial problems. They're planning to report first quarter 2008 results on May 1, so things need to look good. Hence, the reverse stock split. It's kind of a last ditch effort before you go bankrupt." So what's going to happen to Elle MacPherson's contract? And where would all of Bluefly's merchandise end up?