Frederick's of Hollywood Sells Manufacturing Division
For some time now, Frederick’s of Hollywood, known for its racy lingerie, has been transforming itself from a vertical operation to a retailer and brand name.
Moving closer to that direction, Frederick’s announced on Oct. 28 it had completed the sale of its wholesale division, Movie Star, to Dolce Vita Intimate LLC. The purchase price was $4.5 million.
“The divestiture of the wholesale division is another major step forward in our strategy to streamline operations and grow our retail business. We are focused on transforming Frederick’s of Hollywood into a complete sexy lifestyle brand through domestic and international licensing agreements to support our entrance into new product categories and markets,” said Thomas Lynch, chairman and chief executive officer of Frederick’s, in a statement.
Lynch said the sale would bolster the company’s cash position, which will help the company support its ongoing financial responsibilities and growth plans.
Jack Thekkekara, president of Dolce Vita Intimates, said the acquisition will help his company provide its customers with a wider range of products and more sourcing capabilities.
The Movie Star division designs, manufactures, sources, distributes and sells women’s intimate apparel to mass merchandisers and department stores in the United States and Canada. Products include pajamas, night gowns, robes, bras, panties, slips, camisoles, shirts, sundresses, rompers and beachwear.
In early 2008, Frederick’s of Hollywood, a longtime Los Angeles company, completed its merger with Movie Star, an intimate-apparel maker in New York that supplied Wal-Mart and Sears.
The merger formed Frederick’s of Hollywood Group Inc., which is now headquartered in New York.—Deborah Belgum
