If the U.S. Bankruptcy Court approves its reorganization plan, women’s apparel cataloger/retailer Frederick’s of Hollywood could emerge from Chapter 11 bankruptcy protection as early as this fall. Frederick’s has a Sept. 4 hearing with the court.
The Hollywood, CA-based Frederick’s, which has been operating under Chapter 11 since July 2000, announced its plan on Aug. 9 for its creditors to convert substantial debt to equity, according to president Linda LoRe. The plan also calls for a liquidity provision established by members of Frederick’s lender group, budgeted capital and marketing expenses, and the anticipated continuation of the company’s senior management team.
“Hopefully the court will accept the plan to go forward so we can emerge from bankruptcy, but you never know,” LoRe says. “We thought we had things lined up before, but then Sept. 11 happened.”
Under Chapter 11, Frederick’s has opened or remodeled more than 20 stores, built up its Website, and introduced numerous product lines.