Parlux Fragrances, Inc. has entered into a letter of intent to sell its Perry Ellis fragrance rights to Victory International (USA) LLC. The letter of intent is subject to the execution of a definitive agreement and the approvals associated therewith.

The letter of intent provides for Victory to pay Parlux a total of up to $140 million, $120 million for the fragrance rights and up to $20 million for inventory. Payment terms include a non-refundable deposit of $1 million, $10 million for inventory at closing and up to $9 million upon delivery of the inventory. The balance of $120 million for the rights would be paid in sixty equal monthly installments of $2 million, commencing ninety days after closing.