Things are looking tough for Perumania Holdings, a U.S, retailer with exclusive distribution rights to various Trump-branded colognes. According to reports from Reuters, the firm has initiated a recapitalization and is filing for Chapter 11 bankruptcy protection. Despite the bankruptcy filing, Perfumania Holdings says it will “continue to operate in the normal course of business.”
The firm has noted in public statements that it plans to reduce its store count and up its investment in eCommerce and digital distribution channels. It is also moving to become a private firm.
“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 chief executive officer.
Paralux is the wholesale branch of Perfumania and the exclusive distributor of President Trump's fragrances Empire and Success, as well as daughter Ivanka Trump’s fragrance. The firm also represents celebrities such as Rihanna, Jessica Simpson and Jay Z for their fragrance lines.
Perfumania said its Parlux and Five Star Fragrance subsidiaries are not included in the Chapter 11 filings.
“Our retail customers can continue to purchase the brands they love at our stores and online, and our wholesale and retail customers will not see any interruption in the flow of merchandise,” Katz said. “There will be no changes to our license agreements and we will continue to uphold our obligations, and our valued vendors and suppliers will be paid in full.”