Frederick’s of Hollywood in Bankruptcy Court Again

Frederick’s of Hollywood is back in bankruptcy court and this time it has a buyer for its assets. The retailer known for its racy lingerie filed on Sunday in Delaware for bankruptcy court protection. The filing represents its second tour in bankruptcy proceedings. The first filing was in July 2000 and it exited bankruptcy court proceedings in 2003. Harbinger Group Inc. last year led a group of investors that took the company private for $24.8 million. The retail stores have already been shuttered, and the company has a deal with Authentic Brands Group to be the stalking horse for the purchase of its IP assets and online business for $22.5 million in cash, according to court filings. The sale is subject to bankruptcy court approval, as well as better offers. The filing on Sunday shows that Salus Capital Partners will provide $11 million in debtor-in-possession financing. In the petition, the Los Angeles-based Frederick’s listed $36.5 million in assets and $106 million in liabilities.

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