Only a month after offering to take private Parlux Fragrances Inc., CEO Ilia Lekach withdrew his offer Wednesday. So what's new? After all, Lekach has a history of making offers he can't complete, so the latest deal withdrawal should be no surprise. Lekach, who had formed PF Acquisition of Florida LLC as a vehicle to acquire Parlux, said he asked his associates to withdraw the offer to prevent Parlux from missing opportunities. When The Miami Herald asked him to elaborate, Lekach explained that his offer might interfere in negotiations for new product licenses. Parlux makes Paris Hilton and Guess perfumes. Lekach's group had offered $29 a share for the Fort Lauderdale, Fla., company valuing it at $360 million. The Herald also pointed out that Lekach is notorious for making buyout offers too big for him to finance. For example, between him and his brother Rachmil Lekach, they have tried to buy E Com Ventures on two separate occasions, and both times failed to come up with the necessary capital. The Herald also reminds readers that the current offer for Parlux is not Lekach's first. The failed deals combined with the recent delisting of Parlux from Nasdaq for not filing an annual report on time have given Lekach less than a reputable reputation on Wall Street. Of course, Lekach pays no mind to his critics. He claims the company has grown to a $200 million business from a small $6 million organization under his tutelage. Something seems to smell rotten in the land of Parlux...—Matthew Wurtzel and Gerald Magpily
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