ON THE SCENT: Balmain’s fragrance license could soon be up for grabs. By mutual agreement, Inter Parfums SA and Balmain have decided on an early termination of their licensing agreement, initially signed for 12 years starting from January 2012.
Despite the celebrity favorite being hot property in fashion land right now, thanks to creative director Olivier Rousteing, its fragrance sales have declined over the past two years, falling 21 percent to 3.8 million euros, or $4.2 million at average exchange, in 2016, and declining 5.8 percent the previous year.
Nevertheless, Philippe Benacin, chairman and chief executive officer of Inter Parfums SA, denied that the reason behind the early termination was its failure to gain traction in the category. “Balmain had an exit option from 2018 that was part of the contract when the license was initially signed,” he told WWD.
He said that at the time, Alain Hivelin — Balmain’s former majority owner, who died in 2014 — had told him that if the label was ever sold, he would like to be able to get the license back in exchange for a fee.
Mayhoola for Investments, the Qatar-based parent of Valentino and Pal Zileri, bought a majority stake in Balmain last July, as reported.
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