Frederick’s of Hollywood Group Inc. (New York) has agreed to be acquired by a consortium of investors who will return the lingerie retailer to private ownership.
The consortium consists of Harbinger Group Inc. (New York) and its affiliate, HGI Funding LLC; TTG Apparel LLC (New York) and Tokarz Investments LLC, controlled by investor Michael Tokarz; and Fursa Alternative Strategies LLC (New York) and Arsenal Group LLC (San Antonio), both controlled by William Harley 3rd, a director of Frederick’s. Together, these groups currently hold more than 88 percent of the company’s stock.
Upon consummation of the merger, ceo Thomas Lynch will receive a new three-year employment contract.
The 66-year-old company, started by Frederick Mellinger (who was also inventor of the push-up bra), led the lingerie market until the emergence of Victoria’s Secret in the 1990s. It filed for Chapter 11 bankruptcy protection in 2001, emerged in 2003 and merged with sleepwear manufacturer Movie Star Inc. (New York) in 2006, going public again in 2008.
Frederick’s operates 112 specialty stores, a catalogue and an online store.