The loan, secured in part by the intellectual property of Frederick's, is being used to repay a $2 million bridge loan provided by Wells Fargo Financial, as well as for working capital purposes.
One-half of the loan's principal amount and accrued interest matures on July 30, 2013, and the remaining half July 30, 2014.
"The rich and long history of the iconic Frederick's of Hollywood brand combined with our ability to recognize value in the intellectual property and the company's multi-channel distribution, including retail, catalog, e-commerce, wholesale and licensing, made this investment an attractive opportunity for us," says Mitchell C. Berk, chief executive officer of Hilco Consumer Capital.
Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes, it’s completely free.