The two companies are hoping to launch the fragrance line under the Ed Hardy name by the end of 2007, subject to the execution of a definitive licensing agreement.
The new fragrance is expected to represent the Ed Hardy image of a fun, edgy, lifestyle brand that coincides with the established clothing and accessories range that is distributed worldwide and is endorsed by celebrities such as Britney Spears, Kate Winslet and Tommy Hilfiger.
However, the move is most significant for Parlux which has been unable to hide the fact that it is going through challenging times following the sale of high profile brands from its portfolio and internal problems within the company.
Parlux shareholder Glen Nussdorf proposed to buy-out the company last year in a bid to use his position and experience in the fragrance industry to wield more influence on the company's executive board and strengthen the flailing company.
This news was strongly objected by the Parlux board of directors with them stating Nussdorf was only out for his own self-interest, and was not considering the interests of shareholders.
Likewise the recent sale of the company's biggest brand, Perry Ellis, to luxury goods manufacturer, Falic Fashion Group follows distribution and administration problems at the company, causing sales to fall significantly, affecting all of its brands, which include, Guess, XOXO and Paris Hilton fragrance licenses.
However, the new partnership with the Ed Hardy brand, licensed by Nervous Tattoo inc, is a sign that the company could be turning a corner, using the capital raised from the sale of the Perry Ellis brand to reposition itself back at the top of the fragrance industry and continue expanding its portfolio of high profile brands.