In Brief: Parlux Fragrances
This article was originally published in The Rose Sheet
Executive Summary
Parlux Fragrances: Company's $5 mil. restructuring plan will include the discontinuation of brands representing less than 5% of total annual sales, Fort Lauderdale, Fla.-based Parlux announced March 13. Parlux markets fragrances under the Vicky Tiel, Todd Oldham, Baryshnikov, Perry Ellis, Animale, Fred Hayman Beverly Hills and Alexandra de Markoff brands. Under the plan, the company will also "terminate warehousing and distribution operations" in Connecticut and France and consolidate its worldwide operations in southern Florida. Parlux also noted it has "strategically reduced" sales to its "major customer," Miami-based distributor Perfumania, as a percentage of overall sales. Parlux will "continue with this strategy in the upcoming year to improve receivable turnover," the firm noted. The $5 mil. restructuring charge will be taken on a pretax basis during the quarter ending March 31. On March 7, Parlux reported its plan to "independently restructure" and "conclude its relationship" with Montgomery Securities because the deal "did not result in definitive offers which would provide higher shareholder value." Parlux retained the firm in November ("The Rose Sheet" Dec. 2, 1996, In Brief). Parlux Exec VP Jeffrey Dame has left the company...
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