Frederick’s of Hollywood Names Thomas Lynch CEO
Frederick’s of Hollywood Group Inc. has selected Thomas Lynch to serve as its CEO. Lynch had been a member of the company’s board of directors since January 2008. He had also been a member of the company’s compensation committee.
Lynch had been CEO of Fursa Alternative Strategies LLC, one of the company’s major shareholders, from February 2007 through December 2008. Before joining Fursa, he was a managing director at Mellon Asset Management.
He takes the reins of a company which, like many catalog/retailers, has seen better days. During its most recent first quarter, which ended on Oct. 28, Frederick’s reported
By segment, the company generated retail sales of $21.2 million, down from $24.1 million a year earlier. Its direct sales slipped from $13.1 million to $11.9 million during the same period.
Frederick’s did generate $9.4 million in wholesale sales. It had not reported separate wholesale sales in first quarter 2007.
Lynch will oversee a company that is cutting back on its catalog circulation. Between its fiscal years 2006 and 2008, the company reduced its annual catalog circulation from 26.3 million to 18.7 million. According to its most recent financials, its plans a further 3% reduction during fiscal 2009, and anticipates expanding its Internet customer base.
Frederick’s has also curtailed earlier announced plans for store openings.
