A group of large shareholders in Frederick’s of Hollywood have offered to buy the sexy lingerie firm and take it private.
The non-binding offer of 23 cents a share was a 28 percent premium above Frederick’s 18 cents a share at the close of trading on September 27.
News of the offer sent Frederick’s share price to 21 cents the following Monday.
Frederick’s, which sells through its catalog and website and operates 112 retail outlets, reportedly had been considering a sale for at least a year.
In June the firm reported a net loss of $375,000 for its fiscal Q3 ending in April. The loss was tied to a 23 percent decline in revenue to $23.3 million from $30.2 million for the previous year.
Same-store sales dropped by 20.5 percent from the same period a year earlier.