On April 19, 2015, Frederick’s of Hollywood, Inc., and its affiliated companies (the “Debtors” or “Frederick’s”) filed chapter 11 bankruptcy petitions in the United States Bankruptcy Court for the District of Delaware.  At the time of the bankruptcy filing, the Debtors held assets in the amount of $36.5 million, and debts in the amount of $106 million.

According to the Declaration of William Soncini, the Chief Operating Officer of the Debtors, Frederick’s sells high quality women’s apparel and related products under their proprietary Frederick’s of Hollywood brand. Decl. ¶ 8.  The Debtors’ major merchandise categories are foundations, lingerie, ready-to-wear, and accessories (including shoes, handbags, jewelry, personal care products, and novelties).  Id.  The Debtors’ target consumer base is women aged 18-45, and their exclusive product offerings and collections include Seduction by Frederick’s of Hollywood and the Hollywood Exxtreme Cleavage® bra.  Id.

According to the Soncini Declaration, the Debtors have commenced these chapter 11 cases to effectuate a sale of substantially all of their assets to a stalking horse purchaser, subject to higher or better offers received in connection with the proposed sale process.  Decl. ¶ 47.

The Debtors filed various “first-day” motions, including, among others, a motion to pay pre-petition wages to their employees, a utilities motion, a bid procedures motion in connection with the sale of substantially all of the Debtors’ assets, and a post-petition financing motion.  The first-day hearing will take place today, April 21st, at 10:00 a.m.

The law firms of Richards Layton & Finger LLP, and Milbank, Tweed, Hadley & McCloy LLP represent the Debtors in these actions.  The Honorable Kevin Gross will be presiding over this bankruptcy proceeding.