Matt Franz : Zealous For Knowledge

Perfumania Holdings

On August 26, 2017 Perfumania Holdings filed a voluntary petition for relief under Chapter 11. The plan leaves all creditors unimpaired and offers minority equity shareholders $2.00 cash. The cash will come from the Nussdorf and Garcia families, which are the current majority equity and debt holders. If the petition is accepted, the Nussdorf and Garcia families will own 100% of the new equity. This plan is a win-win for insiders, minority shareholders, and creditors and is therefore likely to be accepted by the court. Currently shares of Perfumania trade at a discount to the cash consideration offered for them, which represents an opportunity for profit. Shareholders must tender their shares by October 6, 2017.

My full notes and valuation are here.

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