Perfumania shareholder CIII requests official committee representation

By Caroline Salls

Pittsburgh, Sept. 8 – Perfumania Holdings, Inc. shareholder CIII Holdings LLC asked the U.S. Bankruptcy Court for the District of Delaware to order appointment of an official committee of equity security holders for Perfumania’s Chapter 11 case, according to a motion filed Friday.

“Minority shareholders of Perfumania stand alone,” CIII said in its motion. “With the filing of the debtors’ pre-packaged plan and related disclosure statement, it is clear that everyone else is ‘in on the deal’ except this group of non-insiders.”

Despite this, CIII said Perfumania want to force public shareholders to bear the entire financial burden of its reorganization.

“If public shareholders are left unrepresented, these cases will be over and done – and inside shareholders will walk away with 100% of the stock of the reorganized company – before non-insiders realize that their interests were eradicated,” the motion said.

In addition, CIII said there is a substantial likelihood that equityholders are entitled to a meaningful distribution in the Perfumania cases.

CIII also said it is unlikely that an official committee of unsecured creditors will be appointed in the case, and “under the debtors’ novel application of the Bankruptcy Code, no one will be voting on the plan.”

A Sept. 15 hearing has been requested.

Perfumania is a Bellport, N.Y.-based fragrances company. The company filed bankruptcy on Aug. 26 under Chapter 11 case number 17-11794.

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