After nearly 70 years in business, L.A.-based Fredrick’s of Hollywood – the racy lingerie retailer famous for introducing the push-up bra – has filed for Chapter 11 bankruptcy relief.
Citing issues such as expensive leases, increased competition and declines in mall traffic/storefront sales, Fredrick’s of Hollywood Group, Inc. has noted in its Chapter 11 filing that it only has about $36.5 million in assets and that it is carrying roughly $106 million in debts and liabilities.
The Next Steps for Fredrick’s…
Fredrick’s of Hollywood has recently filed for Chapter 11 bankruptcy protection. Contact our Denver bankruptcy attorney for experienced help resolving business debt issues.
Fredrick’s has noted on its website that all of its 94 physical stores shut their doors for good as of Friday April 17th (at its height, Fredrick’s had 200 storefronts throughout the U.S.). Despite the closure of these stores, however, the lingerie retailer has explained that it will continue selling its products online.
According to reports from Bloomberg, Fredrick’s has reached a deal to sell the remaining online-only retail company to Authentic Brands Group, LLC. That deal includes an agreement to sell the e-commerce operations, as well as all intellectual property and inventory, for $22.5 million cash. Additionally, the Fredrick’s Group will be entitled to 25 percent of future revenues earned by its brand, according to court documents.
As per Chapter 11 rules, Fredrick’s will also hold a court-authorized sale to give other potential buyers an opportunity to bid on and purchase the retail operations.
Interestingly, this is not the first time Fredrick’s has filed for bankruptcy. According to court records, Fredrick’s filed for bankruptcy in July 2000, and its exit plan was ultimately approved by the court in 2002.
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Are you or your business drowning in serious debt? If so, it’s time to contact trusted Denver Bankruptcy Attorney Jon B. Clarke for experienced help:
- Determining your best debt relief options
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For nearly four decades, Mr. Clarke and his diligent support staff have been successfully helping individuals and businesses resolve even the most complex bankruptcy cases. Our experienced legal professionals are committed to providing each of our clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our clients’ cases are resolved as favorably and efficiently as possible.
Contact Us Today
To get answers from an experienced and esteemed lawyer, contact us today. We encourage you to complete our Business or Consumer Debtor Analysis Form. You can also get answers from Denver Bankruptcy Attorney Jon B. Clarke by calling our firm at (866) 916-3950 or by emailing us using the contact form on this page.
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