Dive Summary:

• Frederick’s of Hollywood has reached a takeover agreement with investment firm HGI Funding and a group of company shareholders.
• The struggling apparel and accessories retailer for women will become a privately-held company once the agreement is finalized—ending its stint as a publicly traded company.
• Current Frederick’s of Hollywood CEO Tom Lynch will remain in his role for three years following the finalization of the buyout agreement.

Dive Insight:

Frederick’s of Hollywood has struggled during 2013—a year in which the retailer closed six store locations and experienced a 15% decline in total sales compared to the first quarter of 2013. Frederick’s of Hollywood ended its first quarter of fiscal 2014 on October 27, 2013, and will soon no longer be traded on the OTCQB market.