Perfumania Holdings receives approval for reorganisation plan
American omnichannel fragrance retailer Perfumania Holdings has secured approval for its reorganisation plan from the US Bankruptcy Court for the District of Delaware.
The development comes after the company filed for protection under Chapter 11 in August this year.
The company will operate as a privately-held firm with reduced number of stores.
In addition, the retailer is expected to receive an equity infusion from certain shareholders and holders of its unsecured debt to support ongoing operations.
At the time of filing the bankruptcy petition, Perfumania Holdings president and CEO Michael Katz said: “This process will allow us to more quickly adapt to the shift in consumer shopping habits by focusing more of our resources on implementing our e-commerce strategy, making Perfumania a stronger and more competitive company.”
“The company has been working diligently to amend its business model, reduce its cost structure, improve supply chain efficiency, optimise marketing, reduce expenses and improve operating results long-term.”
The reorganisation plan is aimed to allow the company enough financial resources to pursue long-term growth.
As of July this year, Perfumania operated 230 retail stores across the US, Puerto Rico and the US Virgin Islands.