Frederick's Exits Chapter 11
Frederick's of Hollywood has emerged from Chapter 11 bankruptcy, the company said this week.Frederick's had operated under Chapter 11 bankruptcy protection since July 2000. It has been implementing its brand turnaround, opening or remodeling more than 20 stores and introducing new product lines. It said the emergence from bankruptcy follows a better-than-anticipated sales season.
Key parts of the company's plan include conversion of significant debt to equity by the company's lender group and general unsecured creditors, additional liquidity by members of the lender group, a new revolving credit facility that will let Frederick's devote significant cash to capital expenditures and marketing, the assumption of virtually all of the company's current store leases, and the continuation of the company's senior management team.
