Authentic Brands takes over Frederick's of Hollywood

Brand Management firm Authentic Brands has taken over bankrupt lingerie company Frederick's of Hollywood. In April, Frederick's of Hollywood filed for bankruptcy court protection in Delaware. ABG put in a 22.5 million dollar horse bid for the brand as part of a court-approved action process. Reports say that no other company made an offer that matched ABG's, which included a payout to debtors from future sales, resulting in the cancellation of an auction last month.

A Delaware bankruptcy court approved the auction in May, and late last week ABG closed on the transaction. ABG, which already owns the intellectual property rights to brands such as Marilyn Monroe, Judith Lieber, Juicy Couture, and Jones Apparel Group, will have to work to create a strategy for the struggling lingerie brand. Frederick's of Hollywood's based their strategy on sales through multiple channels, including catalogues, e-commerce, and brick-and-mortar stores.

Prior to the bankruptcy filing, their brick-and-mortar stores were shuttered. ABG, who specializes in positioning brands in the marketplace, will have to decide whether to re-open the brick-and-mortar stores, or to keep Frederick's of Hollywood just in department stores. They would need to find a retail partner to help operate them if they decided to re-open the brick-and-mortar stores. ABG wasn't immediately available for comment.