Sunday, March 18, 2012

What Do Adam Levine and Selena Gomez Have in Common?

Pop singer and talent show coach Adam Levine hates the idea of celebrity fragrance.

[We already knew he was a hater.—Ed.]

He also thinks there’s a stigma attached to celebrity fragrance. So that means that when he does one it won’t be another celebrity cashing in, it will be a stigmatism-fighting act of courage.

[Like boycotting that fascist Mexican restaurant. Brave, brave, Adam Levine.—Ed.]

Levine explained to People his rationale for selling out:
“I kind of thought to myself, ‘Well I’m interested in fashion and there’s a lot of things about it that could be really cool if done properly,” he continues. “So I want to do a thing that’s never done properly [sic?]. That’s my goal.”
Such a modest young man. [Hear that sound? It’s Elizabeth Taylor turning over in her grave.—Ed.]

But back to our headline question. WWD’s Julie Naughton provides the quick answer:
Levine will launch his first fragrance project, a masterbrand called 222 by Adam Levine, in May 2013. He is working with ID Perfumes, a division of Adrenalina Inc., which also handles Selena Gomez’s fragrance license.
And what is Adrenalina? According to a July, 2011, press release on the Selena Gomez deal, the Florida-based company is “an extreme sports and adventure-themed lifestyle brand.”

That’s one way to put it. Another way is to call it a skateboard shop in La Jolla, California.
The Adrenalina retail store was established in 2004. It originated from an idea Zalman Lekach had (extreme sports athlete, creator, on-air host and producer of the Adrenalina TV show), which was to create an authentic extreme sports-based retail environment.
Wait. What’s that, Lassie? There’s a new Adrenalina SEC filing online? Go fetch!

Let’s take a look at the annual report filed by the company three days ago . . . for the fiscal year ending December 31, 2008!
We are required to file periodic quarterly and annual reports with the Securities and Exchange Commission. We have not filed any required reports since the quarter ended September 30, 2008. It is unlikely that we will become current with these filing requirements for at least one year or longer, if at all. Since we are not in compliance, the Securities and Exchange Commission may impose sanctions on both the Company and its management including the revocation of the Company’s registration statement. Should this happen, there will be no public market in the Company’s securities. Your ability to sell and/or transfer shares of our common stock will be extremely limited in which case you will lose the value of your entire investment.

But enough with these trivial report-filing technicalities. How is the extreme sports retail business going?
At December 31, 2008 we had three operating retail stores. After December 31, 2008, and as a result of the economic recession we had insufficient working capital for expansion. In addition, several of our prospective landlords/developers were unable to deliver the anticipated retail space and as of December 31, 2011 all of our retail expansion plans were curtailed and our retail stores were either closed or disposed of at various times through December 31, 2011.

So what does Adrenalina do now?
Our new business strategy is to manufacture, distribute, market, promote, and sell perfumes and related products licensed through celebrities, designers or lifestyle brands.

And who is heading this new business strategy? None other than Ilia Lekach, the guy crowned “Worst CEO of the Year” by the Wall Street Journal’s Market Watch, for his 2006 performance as CEO of Parlux Fragrances.

After his departure from Parlux not much was heard from Mr. Lekach until his Selena Gomez press release. OK, he made a ripple by finishing in the money at the 2011 WSOP. He ranked 312th in the tournament and took home $35,492. That’s more than his current salary at Adrenalina, according the company’s SEC report.

Assisting Ilia Lekach at Adrenalina is his son, company president Isaac Lekach. (Zalman Leakach, noted above, appears to be Isaac’s brother.)

What does the future hold for Adrenalina? Here is what the company says in its annual report:
We may be subject to shareholder lawsuits for failing to file required reports with the Securities and Exchange Commission.

. . . Even if we are successful in defending these actions, management will likely have to devote significant time and resources to these matters which in turn impact our ongoing operations.

We have a history of losses and losses are likely to continue in the future.

We have not generated sufficient revenues to cover our operating expenses. The launch of our new fragrances will involve significant start-up costs primarily attributable to marketing and advertising. Even if we successfully launch our fragrances, there can be no assurance that revenues will be sufficient to satisfy our ongoing operational requirements.

Our current financial condition has raised doubt regarding our ability to continue as a going concern.

If we are unable to obtain additional funding, we may have to reduce our business operations.
So to recap: What do Adam Levine and Selena Gomez have in common? They’ve licensed their celebuscents to an under-capitalized company with slim revenues that may not be able to stay in business long enough to market their products successfully.

It’s enough to make you feel sorry for Selena Gomez.

Adam Levine, not so much.


NadineisthatU said...

This stinks of the usual stinky stuff, in this unregulated, or, poor housekeeping, as we say in the Third World, which is, of course, world class. Why can't USA afford house cleaning for our institutions and 'their ways' hiding everything in the shadows, 'holding on to condemned - property' until they can clean it up and 'make it pretty.' I attribute my fine nose to William J. Freeman, Berkley, emeritus. I wish I knew how to follow the neurotree, because their a lot of high flying 'apes' making fine progress in the 'neurobiology' basic science field. Dr. Freeman used his nose, his experience, and his ten fingers and toes. My Hero!

NadineisthatU said...

Want to clarify on above comment. I am speaking of Walter Jackson III
here is wikipedia link