Home > News > Frederick's of Hollywood Has New Controlling Owner • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Frederick's of Hollywood Has New Controlling Owner

Frederick's of Hollywood Has New Controlling Owner
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
  39.66%
Yes, but in a few years
  36.87%
No
  23.46%
Out of 179 votes. Results based on votes submitted by members of XBIZ.net social network.
Mar 19, 2013 10:30 AM PDT    Text size: 

HOLLYWOOD, Calif. — Frederick's of Hollywood on Monday said it received a $10 million infusion from Five Island Asset Management, giving the investment company a controlling stake in the sexy lingerie retailer.

Five Island, a unit of New York investment firm Harbinger Group Inc., bought 40 million shares of the company at 25 cents per share in the transaction, which gives it the right to appoint at least two directors to the cash-strapped lingerie brand’s board.  

"This capital infusion will play an important role in stabilizing our business and will allow us to improve sales by maintaining appropriate inventory levels in the categories our customers are looking for," said Thomas Lynch, the company's CEO said.

Lynch also said that, effective Friday, the company had terminated its employment agreement with Don Jones, the company's president and chief operating officer. Lynch will assume Jones' duties.

"We are disappointed by the operational and financial issues that have held us back from reconnecting with our customers, which led to sales results that were counter to much of the retail sector," Lynch said. "Therefore, we have implemented a plan to refocus on our lingerie products." 

Frederick's of Hollywood, with 117 stores, reported sales of $24.3 million in its second quarter announced today, posting a loss of $10 million.  

Through the past years, Frederick's of Hollywood has had a hard time differentiating itself and now competes with hundreds of retailers that have both a brick-and-mortar and online presence.

At one point in the past century, Frederick's of Hollywood was the Victoria's Secret of its time.

Entrepreneur Frederick Mellinger opened a lingerie business in New York in 1946 and the next year moved it to Los Angeles. Renamed Frederick's of Hollywood, the company soon became famous for its mail-order catalogs featuring pinups and curvy models.

In 1990 Mellinger died and his family sold its interest in the company in 1997 to an investment bank that took the company private. The company declared Chapter 11 in 2000, emerging from bankruptcy in 2003 and later going public in 2006.

In the past decade, the company diversified its inventory by selling sex toys but long ago it dropped that segment.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

BUSINESS ANALYSIS

Breaking the Fourth Wall: VR Production Tactics, Techniques

The tech world has long seen the cyclic debut of fabulous (and fabulously expensive) products, which initially wowed pundits and early adopters, but were left antiquated with the next round of releases. Virtual... More »

Retailers, Distributors Report Growth in Male Sex Toys Market

Adult retail has been undergoing a transformation in recent years. The adult stores of the 1990s and 2000s focused heavily on porn video sales and catered to a predominantly male clientele, but these days,... More »

VR Hardware: The Foundation of Immersive Technology

From cameras to headsets to controllers, software and more, virtual reality technology is more than the VR content experience itself — it also surrounds the tools that are needed to create and consume... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.

UPCOMING EVENTS

Latin America Adult Business Expo

Jul 10 - Jul 12
Cartagena, Colombia

XBIZ.net Paysite Meetup

Jul 13 - Jul 13
Barcelona, Spain

ANME Founders Show

Jul 16 - Jul 18
Los Angeles Marriott Burbank Airport

QWEBEC Expo

Aug 03 - Aug 06
Montreal, Quebec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!