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| 8-K - FREDERICK'S OF HOLLYWOOD GROUP INC /NY/ | v184901_8k.htm |
EXHIBIT
99.1
Frederick’s
of Hollywood Group Inc. Announces Voting Results of
2010
Annual Meeting of Shareholders
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- -
New York, New York – May 13, 2010
— Frederick’s of Hollywood Group Inc. (NYSE Amex: FOH) (“Company”) today
announced the voting results of its 2010 annual meeting of shareholders held on
May 12, 2010. Shareholders of record on the record date, March 29,
2010, were entitled to vote at the annual meeting. Approximately 82%
of the Company’s outstanding shares were voted.
The
Company’s shareholders elected six directors to serve for one-year terms and
until their successors are elected and qualified. Their appointments
were approved by an average of approximately 98% of the shares
voted.
The
Company’s shareholders also approved, by over 98% of the shares voted, the
previously announced Debt Exchange and Preferred Stock Conversion Agreement with
accounts and funds managed by and/or affiliated with Fursa Alternative
Strategies LLC (“Fursa”), the holders of the Company’s outstanding Tranche C
debt and Series A preferred stock, as well as one of the Company’s largest
common shareholders. Pursuant to the agreement, the Company will issue
approximately 8,664,400 shares of common stock, and warrants to purchase
1,500,000 shares of common stock, to Fursa upon exchange of approximately $14.3
million of outstanding Tranche C debt and accrued interest, and conversion of
approximately $8.8 million of Series A preferred stock, including accrued
dividends, at an effective price of approximately $2.66 per share.
The
Company intends to consummate the transaction as soon as
practicable. The balance sheet effect of the transaction will be an
increase to shareholders’ equity of approximately $23.1 million, which will also
allow the Company to regain compliance with the NYSE Amex minimum shareholders’
equity requirements.
Thomas
Lynch, the Company’s Chairman and Chief Executive Officer, stated, “We would
like to thank our shareholders for approving, and Fursa for agreeing to, the
Debt Exchange and Preferred Stock Conversion transaction. The
improved financial structure of our company as a result of this transaction will
allow us to concentrate on implementing our turnaround strategy and building
shareholder equity.”
The final
voting results for each proposal will be included in a Current Report on Form
8-K to be filed by the Company with the Securities and Exchange
Commission.
Forward Looking
Statement
Certain
of the matters set forth in this press release are forward-looking and involve a
number of risks and uncertainties. These statements are based on
management’s current expectations or beliefs. Actual results may vary
materially from those expressed or implied by the statements
herein. Among the factors that could cause actual results to differ
materially are the following: competition; business conditions and industry
growth; rapidly changing consumer preferences and trends; general economic
conditions; large variations in sales volume with significant customers;
addition or loss of significant customers; continued compliance with government
regulations; loss of key personnel; labor practices; product development;
management of growth, increases in costs of operations or inability to meet
efficiency or cost reduction objectives; timing of orders and deliveries of
products; foreign government regulations and risks of doing business abroad; the
ability to consummate the Debt Exchange and Preferred Stock Conversion
transaction; and the other risks that are described from time to time in
Frederick’s of Hollywood Group Inc.’s SEC reports. Frederick’s of
Hollywood Group Inc. is under no obligation to, and expressly disclaims any
obligation to, update or alter its forward-looking statements, whether as a
result of new information, future events, changes in assumptions or
otherwise.
About Frederick’s of
Hollywood Group Inc.
Frederick’s
of Hollywood Group Inc. conducts its business through its multi-channel retail
division and wholesale division. Through our multi-channel retail
division, we primarily sell women’s intimate apparel and related products under
our proprietary Frederick’s of Hollywood® brand
through 127 specialty retail stores nationwide, our world-famous catalog and an
online shop at www.fredericks.com. With
its exclusive product offerings including Seduction by Frederick’s of Hollywood
and the Hollywood Extreme Cleavage® bra,
Frederick’s of Hollywood is the Original Sex Symbol®. Through
our wholesale division, we design, manufacture, source, distribute and sell
women’s intimate apparel throughout the United States and Canada.
Our press
releases and financial reports can be accessed on our corporate website at www.fohgroup.com.
This
release is available on the KCSA Strategic Communications Web site at www.kcsa.com.
CONTACT:
Frederick’s
of Hollywood Group Inc.
Thomas
Rende, CFO
(212)
798-4700
Investor
Contacts:
Todd
Fromer / Garth Russell
KCSA
Strategic Communications
212-896-1215
/ 212-896-1250
tfromer@kcsa.com
/ grussell@kcsa.com
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