Brand management firm Authentic Brands Group has taken over the bankrupt racy lingerie brand Frederick’s of Hollywood, according to sources.
The brand filed for bankruptcy court protection in Delaware in April, and ABG put in a $22.5 million stalking-horse bid for the brand as part of a court-approved auction process. No other potential bidders were said to have made an offer that matched ABG’s, which included a payout for debtors from future sales, so a scheduled auction was canceled last month. A Delaware bankruptcy court approved the sale in late May, according to court papers. ABG closed on the transaction last week, sources said.
ABG, which already owns the intellectual property rights to brands such as Marilyn Monroe, Judith Lieber, Juicy Couture and Jones New York, will have to figure out a strategy for the intimates apparel brand.
Before the bankruptcy, the intimates brand had a catalogue and online distribution, as well as retail stores. Those stores were shuttered just before the bankruptcy filing. ABG’s expertise is in brand management and positioning brands in the marketplace. It will have to decide what retail doors, whether specialty or department store channels, it believes Frederick’s should be in. If it decides to bring back freestanding stores for the brand, it will have to find a retail partner to operate them.
Executives at ABG could not be reached for comment.