Frederick's of Hollywood files for Chapter 11
Los Angeles-based iconic lingerie retailer Frederick’s of Hollywood has filed for Chapter 11 bankruptcy and is closing all stores.
The 70-year-old retailer founded by the inventor of the push-up bra has reached a deal — $22.5 million plus a 25% stake in revenue — with brand management firm Authentic Brands Group to buy its e-commerce operations.
In a court filing, the retailer revealed it has $36.5 million in assets and $106 million in debt.
Frederick’s of Hollywood practically invented American lingerie retail, and its catalog was infamous for years. But the retailer in recent years allowed the likes of Victoria’s Secret to take the shirt off its back. In an era when lingerie for many people means boyshorts and athletic bras, the retailer’s name pretty much still stands only for push-up bras and slinky garments. The brand has also struggled for years with few updates in its e-commerce game.
This development will surprise few. In fact, the retailer has faced bankruptcy before and went private in 2013 in an effort to reorganize. The plan to remain as an e-commerce-only retailer may work — it harkens back to its successful days as a catalog retailer. But it may be too little too late.
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