Fragrance chain Perfumania files for bankruptcy protection

Markets Associated Press

Fragrance seller Perfumania has filed for bankruptcy protection, and plans to close 65 of its 230 stores as it focuses more on selling online.

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The mall-based retailer plans to offer investors $2 per share as it converts to a private company. The stock surged more than 40 percent Monday to close at $1.87.

Perfumania, which is based in Bellport, New York, filed for bankruptcy protection over the weekend. Spokeswoman Jennifer Mercer said the company expects to eliminate 195 jobs as part of the store closings.

Mercer said $14 million from an undisclosed investor, combined with $84 million in financing from its current lender, Wells Fargo, will pay for the reorganization

Perfumania Holdings Inc. CEO Michael Katz said the company will focus more of its resources on e-commerce.