BOOT
Frederick's of Hollywood Fires President
After reporting a same-store-sales decline of 15.7 percent for its second fiscal quarter of 2013, Frederick’s of Hollywood Group Inc. announced March 18 that it fired President and Chief Operating Officer Don Jones and will change some of its merchandising strategies.
Thomas Lynch, Frederick’s chief executive officer, will take over Jones’ responsibilities. "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. Therefore, we have implemented a plan to refocus on our lingerie products," Lynch said in a prepared statement.
Lynch also blamed the company's recent financial performance on limited funding to market its core product of lingerie as well as the newer categories of dresses, footwear and sportswear. Frederick’s will receive $10 million infusion of capital from Five Island Asset Management LLC, a subsidiary of Harbinger Group Inc., in a deal that was announced recently. Lynch said the funds will stabilize Frederick’s business.
During the second quarter for the 2013 fiscal year, same-store sales declined 15.7 percent for Frederick’s. Net sales decreased 25 percent to $24.3 million from $32.5 million, which was reported in the second fiscal quarter of 2012. Frederick's of Hollywood runs a fleet of 115 specialty retail stores and a catalog as well as an online shop at www.fredericks.com.
Jones was hired in September 2011 after founding retail consultancy Pogan Retail LLC and serving in top executive positions for Gap Inc. and Target Corp.—Andrew Asch
