Perfumania Files For Bankruptcy, Plans To Close 64 Stores

Image courtesy of @GFToday

You’ll soon have fewer stores to scoop up a bottle of perfume or cologne at a lower price: Discount fragrance retailer Perfumania has filed for bankruptcy and outlined plans to close dozens of stores. 

Perfumania Holdings filed [PDF] for voluntary Chapter 11 bankruptcy Saturday, setting in motion a plan to reorganize the company by reducing its store portfolio by 64 locations and turn its focus toward online sales.

While the company notes that it will continue to operate as normal during the bankruptcy process, it plans to emerge as a privately-held operation.

Perfumania’s subsidiaries Parlux and Five Star Fragrance are not included in the bankruptcy filings.

“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,” Michael Katz, Perfumania president and CEO, said in a statement.

Closing Stores

As for the closing locations, Perfumania notes that it had already been reducing its retail store lineup. CNN reports that the company plans to close 64 of its 230 locations.

The company didn’t disclose which stores were affected by the closures, but noted that they were under-performing and located in areas with declining mall traffic.

Online Sales

In light of Perfumania’s store closings, the company says it will turn its focus on its e-commerce sales.

While the company did not provide details on how it will improve e-commerce, it did note that will emphasize and invest in its online business to “improve customers’ online shopping experience.”

Perfuming says it will look for ways to “leverage digital technologies” and put a greater focus on omni-channel initiatives to enhance and create a “more seamless shopping experience.”