Frederick’s of Hollywood Group Inc. said it hired investment bank Allen & Co. to consider its strategic options, including an outright sale of the company or a business combination.

“Over the past few months, the board has received several inquiries regarding various transactions,” said Thomas Lynch, chairman and chief executive officer. “We believe it is an appropriate time to formalize the process by engaging a world-class adviser that can assist us in identifying and reviewing a wide array of strategic alternatives that can maximize value for our shareholders.”

Fredrick’s does not have a time frame for the review, but stockholders appreciated the move. Shares of the company rose 20 percent to 30 cents in early trading today.

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