Frederick's of Hollywood Group has announced the completion of the sale of its wholesale division, Movie Star, to Dolce Vita Intimates.
The US lingerie retailer claimed the step, which bolsters its cash position, will enable it to expand into new products and markets.
Frederick's of Hollywood chairman and chief executive Thomas Lynch said: "The divestiture of the wholesale division is another major step forward in our strategy to streamline operations and grow our retail business. We are focused on transforming Frederick's of Hollywood into a complete sexy lifestyle brand through domestic and international licensing agreements to support our entrance into new product categories and markets."
Frederick's of Hollywood Group Inc. sells women's intimate apparel, swimwear and related products through 126 specialty retail stores, a catalogue and its online site. The company previously announced plans to explore strategic alternatives for its wholesale business in September 2010.
Dolce Vita Intimates president Jack Thekkekara added: "The acquisition will further our ability to service existing customers through broadening our product line and sourcing capabilities while enhancing Movie Star's tradition of service."