Frederick's of Hollywood soon may be selling more than bras and thongs. For the right price, you can probably buy the whole company.
Despite its famous name and provocative wares, the lingerie emporium has been losing money for years. That prompted Frederick's of Hollywood Group Inc. to announce Monday that it has hired New York investment bank Allen & Co. to explore "a broad range of strategic alternatives, including but not limited to a sale of the company or a business combination."
The company’s chief executive, Thomas Lynch, said in a statement that the company "has received several inquiries regarding various transactions" over the last few months, but has set no deadline for making a decision about its future.
Once a pioneer in the field of intimate women's apparel, Frederick's has been squeezed by competition from Victoria's Secret and other rivals. Tantalizing product names -– including the Hollywood Exxtreme Cleavage Halter Bra and the Va-Va-Voom Satin Full-Figure Bra –- have not been enough to reverse four consecutive years of red ink.