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People Are Talking Apr 11, 2008 @ 3:40pm

Bluefly, Revlon: What’s Going On?

by Natalie Hormilla

revlon flair perfume.jpgThe 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?

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Posted in People Are Talking and Bluefly, Revlon

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Comments

1

posted by flizzers

Apr 11, 2008 4:23PM

I can't speak on the Revlon aspect, but as far as Bluefly is concerned, didn't they JUST launch a new site, b*fly, that's supposed to be for more casual and contemporary items?? I can't imagine that they would put the effort into launching a new site if they were going bankrupt, but then again, I'm no financial analyst, maybe that's EXACTLY what they would do......

2

posted by louis

Apr 11, 2008 4:29PM

i love that i understood all of that - bless my econ minor...(and math major).

and if bluefly just did a spin off - a potentially expensive, revenue sucking spinoff - that isn't catching on, it could make the company tank.

Think "new coke" and how it almost DESTROYED Coca-Cola.

3

posted by Fassion

Apr 11, 2008 6:45PM

Oh Nooooo. Not my Bluefly!

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4

posted by guest

Apr 11, 2008 7:13PM

Maybe if Bluefly wasnt so overpriced for the 3-4 season old crap they try to pawn off they wouldnt be going out of business. 20% off something that is 3 seasons old isnt gonna cut it

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5

posted by guest

Apr 11, 2008 8:19PM

Everything about this post implies that people who are into fashion don't understand finance.

I beg to differ!

Actually, i believe the only women who should be buying high-priced designer fashion should be those who can afford it(i.e. women who make bank roll salary--and are usally in finance). I hate it when i see SATC idolizers, who really can't afford the goods, spend all their money on expensive clothes and accessories. (I think a splurge now and then is fine...if you're saving appropriately).

Women who are spending others peoples' money (daddy's, sugar-daddy's...etc) to buy designer clothes--that is even worse.

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6

posted by guest

Apr 11, 2008 10:37PM

actually, flizzers, that is EXACTLY what a company going under would do.

to prove that your company is still "viable" they would go out and a: buy another company to prove financial prowess or b: launch a new website to show that their site is "growing and in no way failing".

should be interesting to see what comes this summer...

i sincerely hope they both pull out of this.

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7

posted by guest

Apr 12, 2008 11:06AM

"Actually, i believe the only women who should be buying high-priced designer fashion should be those who can afford it(i.e. women who make bank roll salary--and are usally in finance). I hate it when i see SATC idolizers, who really can't afford the goods, spend all their money on expensive clothes and accessories. (I think a splurge now and then is fine...if you're saving appropriately).

Women who are spending others peoples' money (daddy's, sugar-daddy's...etc) to buy designer clothes--that is even worse."

-Wow, snob and a half aren't you? Just because someone isn't a high rate lawyer or a cpa doesn't mean she shouldn't be allowed to purchase designer brands. And it also doesn't mean that they spend all of their money on it. Some people actually budget their money and spend it wisely on a few good designer pieces a season.

And honey, we're all spending someone's money at some point in our lives, you're not one to judge. A generous bf or husband isn't a sugar daddy and a father who wants to treat their daughter sometimes isn't bad either. I think you've been watching too many "sweet sixteen" and "spoiled rich girl" shows.

8

posted by purly

Apr 12, 2008 2:29PM

Does that mean bluefly will have a 'going out of business' sale? Because I might actually buy stuff from them if it wasn't so highly priced.

9

posted by Kris

Apr 12, 2008 6:37PM

I completely agree with guest 7:13pm! Bluefly is soooo expensive, I've long stopped even wastimg my time browsing their stuff! They deserve to go down for such a crappy business model.

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10

posted by guest

Apr 13, 2008 1:49AM

Revlon has been doing very very badly from a financial aspect ever since the days of Cindy Crawford. It has actually been in worse shape before. I doubt it's going to go out of business.

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11

posted by guest

Apr 14, 2008 9:40AM

Because our government was unwilling so long to say the "R" word, we're all surprised to see such companies go under.

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12

posted by guest

Apr 14, 2008 10:18AM

Rest assured. I have it on good authority that Bluefly isn't going anywhere. Can't speak for their stock prices etc, but I know several people who work there and they are 100% sure its business as usual...

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13

posted by guest

Apr 14, 2008 11:23AM

I too have it on good authority that they are doing 100 perccent well. They have more work now, than usual in fact, which is a sore point for my source. I heard about some partnership they now have with Amazon, which would indicate healthy progress. I think the site does a good job of making fashion and luxury goods more affordable, but thank god I am in NYC - the capital of sample sales- so that I don't have to rely on them to satiate my cravings.

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