Frederick's Of Hollywood Announces International Expansion
NEW YORK, March 15, 2011 /PRNewswire/ -- Frederick's of Hollywood Group Inc. (NYSE Amex: FOH) ("Company") announced today that it has entered into an exclusive multi-year licensing agreement with Abu Dhabi-based Emirates Associated Business Group (EABG) to build and operate Frederick's of Hollywood retail stores in the Middle East.
The agreement provides for EABG to open at least 10 Frederick's of Hollywood retail stores in six Middle Eastern countries over the next three years, with additional store openings based on a mutually agreed upon expansion plan. In addition, a flagship store in Abu Dhabi is scheduled to open in April 2011.
Thomas Lynch, Chairman and Chief Executive Officer of Frederick's of Hollywood Group Inc., stated, "Frederick's of Hollywood is known as a fun, sexy brand for women around the world; however, we currently only sell our products in North America. The agreement with EABG to open stores in multiple Middle Eastern countries is an exciting first step for Frederick's of Hollywood in our strategy to extend our customer reach to new parts of the world. By utilizing licensing agreements to enter new geographic markets, we can cost effectively and quickly grow our business, while also benefiting from our partners' knowledge, presence and experience in these new retail environments."Raid Abu Hudra, Chief Executive Officer of EABG, stated, "We believe that the Frederick's of Hollywood brand's fun and luxurious image will successfully carry over to the Middle East and will be a hit among young Middle Eastern women. As such, we have an aggressive strategy in place to open Frederick's of Hollywood retail stores across the area, with our flagship retail location slated to open in Abu Dhabi next month. We are looking forward to a long and successful partnership with Frederick's of Hollywood." Forward Looking Statement Certain of the matters set forth in this press release are forward-looking and involve a number of risks and uncertainties. These statements are based on management's current expectations or beliefs. Actual results may vary materially from those expressed or implied by the statements herein. Among the factors that could cause actual results to differ materially are the following: competition; business conditions and industry growth; rapidly changing consumer preferences and trends; general economic conditions; working capital needs; continued compliance with government regulations; loss of key personnel; labor practices; product development; management of growth, increases in costs of operations or inability to meet efficiency or cost reduction objectives; timing of orders and deliveries of products; foreign government regulations and risks of doing business abroad; and the other risks that are described from time to time in Frederick's of Hollywood Group Inc.'s SEC reports. Frederick's of Hollywood Group Inc. is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
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