Attached files
| file | filename |
|---|---|
| 8-K - FREDERICK'S OF HOLLYWOOD GROUP INC /NY/ | v200327_8k.htm |
| EX-2.1 - FREDERICK'S OF HOLLYWOOD GROUP INC /NY/ | v200327_ex2-1.htm |
| EX-10.1 - FREDERICK'S OF HOLLYWOOD GROUP INC /NY/ | v200327_ex10-1.htm |
EXHIBIT
99.1
FOR
IMMEDIATE RELEASE
Frederick’s
of Hollywood Completes Sale of Wholesale Division
to
Dolce Vita Intimates
-
- -
New York, New York – October 28, 2010
— Frederick’s of Hollywood Group Inc. (NYSE Amex: FOH) (“Company”) today
announced that it has completed the sale of its wholesale division, Movie Star,
to Dolce Vita Intimates, LLC.
“The
divestiture of the wholesale division is another major step forward in our
strategy to streamline operations and grow our retail business. We are
focused on transforming Frederick’s of Hollywood into a complete sexy lifestyle
brand through domestic and international licensing agreements to support our
entrance into new product categories and markets,” stated Thomas Lynch, the
Company’s Chairman and Chief Executive Officer.
“The
proceeds from the sale of our wholesale business have further bolstered our cash
position. When combined with the significant capital events that took
place over the last fiscal year, we are now better positioned to support the
ongoing financial requirements of our continuing operations and the
implementation of our growth strategy,” Mr. Lynch concluded.
Jack
Thekkekara, President of Dolce Vita Intimates, said, “The acquisition will
further our ability to service existing customers through broadening our product
line and sourcing capabilities while enhancing Movie Star’s tradition of
service.”
Frederick’s
of Hollywood previously announced plans to explore strategic alternatives for
its wholesale business in September 2010.
The
investment banking firm, Avalon Group, Ltd., advised the Company on the
transaction. Dolce Vita was advised by the investment banking firm CoView
Capital, Inc.
Further
details concerning the transaction will be contained 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; working
capital needs; 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; 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., through its subsidiaries, sells women’s intimate
apparel, swimwear and related products under its proprietary Frederick’s of
Hollywood® brand
through 126 specialty retail stores, a world-famous catalog and an online shop
at www.fredericks.com.
With its exclusive product offerings including Seduction by Frederick’s of
Hollywood, the Hollywood Exxtreme Cleavage® bra and
Hollywood Sizzle Pool Party Swim™,
Frederick’s of Hollywood is the Original Sex Symbol®.
Our press
releases and financial reports can be accessed on our corporate website at
http://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
Frederick’s
of Hollywood Group Inc. - Investor Contacts:
Todd
Fromer / Garth Russell
KCSA
Strategic Communications
212-896-1215
/ 212-896-1250
tfromer@kcsa.com
/ grussell@kcsa.com
Avalon
Group, Ltd.
Lynda
Davey / Yolanda Wardowski
212-764-5610
ldavey@avalongroupltd.com
/ ywardowski@avalongroupltd.com