*Frederick's of Hollywood Files for Chapter 11
Frederick's, Hollywood, CA, will continue to operate all of its divisions, including more than 200 retail stores in 40 states, while it restructures its debt. The company said it has received a commitment for new financing from Ableco Finance LLC, an affiliate of Cerberus Capital Management L.P. and Gabriel Capital Group. The funds will be used, subject to bankruptcy court approval, to fund operations and purchase inventory.
Frederick's has also contracted with Crossroads LLC, a turnaround management and financial advisory firm, and the retailer has retained the law firm Klee, Tuchin, Bogdanoff & Stern LLP to help manage the restructuring process.
Linda LoRe, who replaced Terry Patterson as president/CEO of the company last year, will remain in that position and James Skelton, a principal of Crossroads LLC, will become chief operating officer and the responsible party for managing the bankruptcy process.