Frederick’s of Hollywood to emerge from Chapter 11

The U.S. Bankruptcy Court approved Frederick’s of Hollywood’s reorganization plan. The lingerie cataloger/retailer expects to emerge from Chapter 11 bankruptcy protection early next month.

The key elements of the plan include the conversion of significant debt to equity by the company’s lender group and general unsecured creditors; the provision of additional liquidity by members of the company’s lender group; a new revolving credit facility that will allow the company to devote significant cash to capital expenditures and marketing; the assumption of substantially all of the company’s current store leases; and the anticipated continuation of the company’s senior management team.

According to a company release, the unsecured creditors’ committee, the company’s secured lenders, and substantially all of the company’s landlords supported the reorganization plan.

Frederick’s has been operating under Chapter 11 since July 2000. As part of its ongoing turnaround, it has opened or remodeled more than 20 stores, introduced product lines, and rebuilt its Website.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.