Perfumania Closing 64 Stores, Files for Bankruptcy

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Perfumania Holdings, Inc. (NASDAQ:PERF) announced that it will be shutting down 64 stores and filing for bankruptcy.

Perfumania

The perfume retailer has filed for Chapter 11 relief in U.S. bankruptcy court voluntarily. Perfumania said that while it attempts to resurrect its business, open stores “continue to operate in the normal course of business.”

By shutting down more than 60 locations, Perfumania hopes that it can turn its focus towards revitalizing the stores that are still in operation, while also investing more into its e-commerce business. Additionally, the retailer plans to go private in the near future.

Its wholesale business, Parlux, is quite relevant at the moment as it holds exclusive distribution rights to several fragrances that were designed for President Donald Trump and daughter Ivanka Trump. These include the POTUS’ fragrances Empire and Success.

Perfumania also holds the rights to fragrances from a number of celebrities, including Rihanna and Jay-Z.

“Our employees can be assured that during this time and beyond they will continue to receive their salaries and benefits,” said Michael Katz, Perfumania’s president and CEO.

Katz added that the company’s customers can continue buying the fragrances they’ve grown accustomed to wearing at the stores that will remain open, as well as online. He said that there will be no changes to the company’s license agreements, and its suppliers and vendors will be paid in full.

PERF stock grew 40.6% Monday afternoon.


Article printed from InvestorPlace Media, https://investorplace.com/2017/08/perfumania-holdings-inc-perf/.

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