Frederick's of Hollywood files for Chapter 11 bankruptcy, plans to sell online business

Markets Associated Press

Racy lingerie retailer Frederick's of Hollywood is seeking bankruptcy protection in federal court after closing all of its stores and switching to an online-only business, which it intends to sell to the highest bidder.

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The privately held company says competition, decreased mall foot traffic and onerous leases helped push it into a Chapter 11 bankruptcy filing.

Frederick's of Hollywood Group Inc. says in bankruptcy court papers that it has not had a profitable fiscal year since 2007. Its balance sheet lists about $36.5 million in assets and around $106 million in liabilities.

Last year, the company finalized a nearly $25 million deal in which it was taken private by a consortium that included a subsidiary of New York-based Harbinger Group Inc.

A company website says it no longer operates stores.