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  1. #1
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    Default Perfumania to Buy Parlux in $170 Million Deal to Add Direct Product Supply

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  2. #2

    Default Re: Perfumania to Buy Parlux in $170 Million Deal to Add Direct Product Supply

    This deal is a classical case of vertical integration, much like how LVMH owns Sephora in addition to several fragrance brands (Dior, Givenchy, Guerlain, etc.) or how Comcast owns NBC, USA, E!, and other TV networks.

    But for me, this deal raises many questions. One of my friends is a vendor rep for Parlux at the local Macy's, and there's a Perfumania in the same mall as that Macy's. Will Parlux decide to launch scents first at Perfumania, much like how some companies have initial exclusives at Macy's, Sephora, or Nordstrom? Will Parlux cut out vendor rep positions at department stores in malls with Perfumania stores? And will Parlux keep selling fragrances outside the USA, where there are no Perfumania stores?

    All in all, this should be an interesting acquisition.
    It's really quite pleasant, except for the smell (...)
    -"Mama", My Chemical Romance

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