(Filed Under Financial and General Interest News). Authentic Brands Group (ABG) completed its purchase of Frederick’s of Hollywood in early June, and revealed it had licensed the brand to Bendon Group for intimate apparel and swimwear. Meanwhile, additional creditor claims were filed.
At the end of June, Frederick’s COO Bill Soncini told BODY that he will soon be leaving the company. And the retailer, which recently closed all of its stores, is now selling only online, under the direction of Bendon.
Some of the firm’s old suppliers told BODY they had met with the new management and may provide new product going forward.
Authentic Brand Group (ABG) plans to “launch a new brand vision” for Frederick’s of Hollywood. In addition to continuing to operate as an online retailer of lingerie and related items, ABG plans to offer the brand in other retail channels, “expand product categories and drive distribution across department stores and specialty retailers in key markets including North America, Europe, Asia, South America and Latin America.”
Licensees for other categories have not been announced. Before the bankruptcy, Frederick’s had licensing agreements in place with a handful of companies including Mystery House Costumes, Roffe Accessories, Lady Sandra Home Fashions and others.
Bendon’s other brands include Heidi Klum Intimates (which recently replaced its licensed Elle MacPherson collection), Pleasure State, Stella McCartney, Lovable and Fayreform.
“Frederick’s of Hollywood supports our strategic focus of diversifying the portfolio and strengthens ABG’s position in the intimates apparel category,” said Jamie Salter, chairman and CEO of ABG.
According to an ABG announcement, “The product design aesthetic will be led by intimate apparel, which will set the tone for other tent pole categories, including beauty, fragrance and personal care.”
Under its deal with Frederick’s, ABG must share licensing and other types of revenue. “Immediately following such time as ABG receives $10 million in net brand revenue, ABG shall perpetually and immediately begin to pay FOH [Frederick’s] or its successor,” the agreement reads, “25% of the net brand revenue and 25% of other revenue.”
At the time of the Frederick’s bankruptcy filing in mid-April, court filings revealed that about 40 intimate apparel firms were included among the approximately 6500 creditors. Since then, several firms have filed claims with the court. Longray Intimates (a firm affiliated with Lingerie International Co Ltd. of China), filed a claim for $ 2,429,397.43 (which was $63,264.47 more than was originally reported in April). Wonder Form, which had been on the list of creditors with no amount specified, filed a claim under the name Jerry Petriello, for $408,710.96. That amount makes it one of the largest creditors among intimates makers.
Other new claims registered were for $12,731.42 by Brooklyn-based hosiery maker Vanea; $20,160 by Pacific Group NY, Llc.; $192,924.30 by Q-T Foundations; $169,612.67 by Angel Intimates; $20,975.75 by Cortland Foundations; and $30,179.60 by Neotex International.
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