Back in February Liberum selected Parlux Fragrances, Inc. (PARL - NASDAQ) as one of 13 - CEO related changes out of a total of 204 CEO changes for the month investors should re-examine for investment potential. Parlux, for a number of months prior to February, was engrossed in a fight with activist investor Glenn Nussdorf (who controlled 1,912,629 direct shares of the firm) and the company's CEO at the time Ilia Lekach (who controlled 2,182,949 direct and indirect shares of the firm) over board control and the direction of the firm. Lekach after a great deal of effort folded his cards in February and agreed to a 50-50 arrangement for board control as well as his resignation as Chairman and CEO. Nussdorf agreed that for two years he would not make any proposal to acquire Parlux, unless the offer includes all shares at a minimum of $11 per share.
The ongoing fight between Nussdorf and Lekach manifested itself while the company was facing possible de-listing from NASDAQ. The firm has so far managed to weather the controversy and appointed Neil J. Katz as interim CEO upon Lekach's resignation in February. Katz, an ally of Nussdorf, was also considered for the top position as part of the overall CEO search conducted.
Katz was formally appointed CEO and Chairman on May 14. He has over 30 years experience in the beauty business and has served as President of Liz Claiborne Cosmetics and President of Revlon Beauty Care Division. Parlux, despite continuing weak performance, may manage to find its focus. Today the company announced another major appointment, the promotion of Raymond Balsys to the role of chief financial officer, replacing Frank A. Buttacavoli, who will remain chief operating officer. The company said the separation of the COO and CFO roles will allow Buttacavoli to work closely with CEO Neil J. Katz on overall planning, management, and signing new fragrance licenses.
Keep a close eye on the company's operations.