Lingerie retailer Frederick's of Hollywood filed for bankruptcy protection and scooped up a $22.5 million buyout offer from Authentic Brands Group. The retailer's assets are slated to be auctioned off on May 28.
Due to the agreement, the chain will continue as an online business, reported the Wall Street Journal. There is still a chance for another company to put forward an offer that might include reopening the brick-and-mortars.
Authentic Brands is no stranger to helping struggling retailers. In 2013 the company acquired Juicy for $195 million—not long before Juicy Couture announced that it would shutter all U.S. stores and focus on international operations.
Frederick's of Hollywood began as a mail order company and at one point operated 200 stores. The retailer has since liquidated all stores and announced the impending closure of all remaining stores last week. The company blamed increased competition and the decline in mall traffic for its troubles.
The company's total assets are about $36.5 million and its total liabilities are about $106 million.
The brand has struggled to compete since being hit by the recession. At the close of 2013, the retailer was taken private by a group led by its largest shareholder, Harbinger Group, in an effort to save its floundering business.
-See this Wall Street Journal article
Frederick's of Hollywood makes deal to go private
Juicy Couture founders launch e-commerce site
Juicy Couture to enter India
Juicy Couture to close US stores, debut World of Juicy
Kohl's now featuring Juicy Couture brand