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ANALYSIS: Why Revlon Is Not the Next Hertz

June 30, 2022, 9:00 AM

In the first week after Revlon’s Chapter 11 bankruptcy filing June 15, the company’s stock price climbed approximately 360%. It has since fallen, but as of closing bell June 29, the stock price is still twice as high as the date it entered bankruptcy.

The unusual post-filing surge in the Revlon stock price has caused many to draw comparisons with Hertz’s 2020 Chapter 11 case, and to hail Revlon as the next meme stock. However, taking a closer look at Hertz’s Chapter 11 case and comparing it with Revlon’s case illustrates why this comparison isn’t appropriate.

After Hertz’s bankruptcy ...