(Filed Under wholesale Lingerie News). After five straight quarters in which it has reported losses, Frederick’s of Hollywood Group Inc. has hired Allen & Company LLC, the New York-based investment bank, to assist the board of directors “in evaluating and exploring a broad range of strategic alternatives, including but not limited to a sale of the company or a business combination.”
According to Thomas Lynch, chairman and CEO, “Over the past few months, the board has received several inquiries regarding various transactions. We believe it is an appropriate time to formalize the process by engaging a world-class advisor that can assist us in identifying and reviewing a wide array of strategic alternatives that can maximize value for our shareholders.”
According to the company announcement, it “does not have a defined time line for the strategic review, and there can be no assurance that the review will result in any specific action or transaction. The company does not intend to comment further regarding the evaluation of strategic alternatives, unless a definitive agreement for a specific transaction is entered into, the process is concluded, or it otherwise deems further disclosure is appropriate or required.”
For the 2012 fiscal second quarter, net losses at the company increased to $3.5 million compared to a net loss of $3.3 million during the same quarter last year. Sales also declined to $32.5 million from $32.6 million in the same quarter last year.
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