Frederick’s of Hollywood receives proposal to go private

Hollywood, Calif. – On Sept. 26, 2013, the board of directors of Frederick’s of Hollywood Group Inc. received a non-binding proposal letter from a consortium of HGI Funding LLC, TTG Apparel, LLC, Tokarz Investments, LLC, Fursa Alternative Strategies LLC, and Arsenal Group LLC to acquire all of the outstanding shares of its common stock.

The letter gave a proposed price of $0.23 per share as part of a going private transaction, subject to certain conditions.  The proposal represents a 26% premium to the then trailing 10-day average closing price of the company's common stock. As of Sept. 26, consortium members combined owned close to 70% of Frederick’s stock.

The company's board of directors has appointed Milton Walters, its sole independent director, to serve as the lead director in connection with the full board's review and consideration of the proposed transaction and the lead director must approve any proposed transaction.

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