Fashion
Frederick’s of Hollywood, the 69-year old lingerie retailer, has closed all of its stores and sought Chapter 11 bankruptcy protection.
The company has placed a notice on its website saying it will now only sell products online.
It is the second time since 2000 Frederick’s has filed for bankruptcy protection.
After a three year long restructure which saw it strengthen its balance sheet, reinvigorate its product range and return to profitability, the retailer emerged from the last one in 2003.
But it suffered a body blow last year from Californian legislation requiring companies to disclose if any carcinogens were present in their products. Frederick’s was thus required to disclose its bras might contain lead and some analysts have suggested this may have driven customers away.
Last year, a group of investors, including private equity investor Harbinger Group, bought the business for a modest US$24.8 million. In February, Frederick’s of Hollywood said it would close one third of its stores and inventory liquidation specialist Great American Group was engaged to sell off stock.
US media reports suggest a buyer is waiting in the wings to rescue the company, most likely reshaping it as an online only brand.
