CIRX
Industry:
Consumer Staples Producers

DESCRIPTION

CirTran is a small, asset-light consumer products company that manufactures and distributes products under the HUSTLER® brand. CirTran operates under an Exclusive Manufacturing and Distribution Agreement with GloBrands, a licensee of the HUSTLER® trademark owned by the Flynt/HUSTLER® organization. Under this arrangement, CirTran produces and sells condoms, electronic cigarettes, electronic cigars, cigars, hookahs, hookah tobacco, energy drinks, and water beverages bearing the HUSTLER® brand. CirTran sells these products through HUSTLER® Hollywood retail locations, gentlemen's clubs, the Deja Vu organization's network of clubs and adult retail stores, as well as mass retail, drug stores, convenience stores, casinos, and online channels. CirTran's economics under the GloBrands agreement are cost-plus: CirTran retains 120% of its cost of goods sold plus 10% of gross sales, making margins formulaic and tied to volume. CirTran owns no manufacturing facilities, outsourcing production to contract manufacturers primarily in Asia. Beyond HUSTLER®, CirTran also acts as a middleman in domestic consumer products markets — covering home and garden, kitchen, health and beauty, and licensed merchandise — managing branding, sourcing, and distribution for product owners in exchange for royalties or fees. CirTran has only four full-time employees, reflecting a deliberate effort to minimize fixed costs. The business is heavily dependent on the GloBrands licensing relationship, which can be terminated with limited notice, and CirTran has no direct contractual relationship with the Flynt/HUSTLER® organization itself.

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