Naked Brand gives promising update on Frederick's of Hollywood

By

Jennifer Braun

Published
Jul 27, 2018

Fashion and lifestyle brand Naked Brand Group Inc. reported a promising business update on Thursday for its acquisition target, Frederick's of Hollywood (FOH).

The intimates brand direct-to-consumer e-commerce sales hit $20.2 million for the last twelve months ended June 30, 2018, up 26 percent compared to the same period last year. 
 
The sales jump was attributed to an upgrade in the company’s mobile platform.

“We are pleased to see that FOH Online Corp.’s sales have grown at such a rapid rate in response to key improvements made over the last year,” said Justin Davis-Rice, CEO of Naked Brand Group Limited, in a news statement. 
 
“This is a clear indication that FOH’s strategic pivot to their mobile platform with multiple enhancements is not only driving improved customer retention, but also new sales.
 
Davis-Rice added that Naked Brand is currently in the final stages of negotiating the acquisition. The transaction is expected to close in the third quarter of 2018. 
 
FOH was founded in 1946 and is known for launching the push-up bra, the padded bra, and black lingerie to the U.S.
 
Naked brand is currently seeking to acquire all of the outstanding common stock of FOH in exchange for both shares of the company and the forgiveness of debt owed to the company’s wholly-owned subsidiary, Bendon Limited.
 
Through the acquisition the company would gain control of FOH’s existing license. 
 
Though the company has conducted advanced negotiations with FOH, it has not yet entered into a definitive agreement for the acquisition.