Beauty Industry

Parlux to Sell Noncore Lines

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By: Jamie Matusow

Editor-in-Chief

Parlux Fragrances Inc., which makes perfume and accessories as well as licensing such brands as Paris Hilton, Perry Ellis and Guess?, said it is interested in selling some “noncore” lines. Parlux said it would work with GLMAC to sell its product lines. GLMAC helped Parlux sell its rights to Perry Ellis fragrance to Victory International LLC for up to $140 million. In a statement, company chairman and chief executive Ilia Lekach said Parlux continues to pursue new fragrance licenses and will try to sell a number of product lines that don’t have the “upside” that other opportunities might. “We expect the sale of the noncore licenses will be cash-flow positive and provide funding for potential new fragrance ventures,” Lekach said. In July of 2005, the company said it would explore strategic alternatives, including the sale of the company. This year, an investor group led by Lekach offered to take the company private, but withdrew its bid in July after the company received competing offers from outsiders. At the time, the company said it would focus on other offers.

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