Perfumania Holdings Inc.’s reorganization plan, expected to become effective on Wednesday, has been accepted by the U.S. Bankruptcy Court for the District of Delaware, Newsday reported today. The Bellport, N.Y.,-based seller of celebrity and designer fragrances said that it “expects to pay vendors and suppliers in full in the ordinary course of business” under the pre-packaged bankruptcy plan. The chapter 11 plan calls for all outstanding shares of Perfumania common stock to be canceled, though “shareholders will be given the opportunity” to receive $2 per share in exchange for completing a shareholder release form. The retailer’s stock was delisted from the Nasdaq Stock Market in September after the company failed to make mandatory government filings. Read more.
What does the future hold for retail bankruptcies? Be sure to attend ABI’s Bankruptcy 2017: Views from the Bench on October 17.
