A consortium of Frederick’s of Hollywood Group Inc. investors offered to take the company private.
Frederick’s said today that HGI Funding LLC, TTG Apparel, LLC, Tokarz Investments LLC, Fursa Alternative Strategies LLC and Arsenal Group LLC approached the racy intimates firm with a non-binding proposal on Thursday.
HGI holds the company’s Series A convertible preferred stock, while TTG and Tokarz together own 25.9 percent of Frederick’s common stock and Fursa and Arsenal, which controlled by William F. Harley, a director of the company, owns about 43.5 percent of its common stock.
The consortium offered 23 cents per share for Frederick’s, valuing its common stock at a total of $9 million. Frederick’s stock last traded at 18 cents.