Frederick’s Sold To Chicago Group

Frederick’s of Hollywood Inc., the Los Angeles-based retailer known for its racy lace and lingerie, said it has accepted a $53.4 million buyout offer from Chicago-based investment group Knightsbridge Capital Corp.

The deal, announced Sunday, would mark the end of an era for the famous merchandiser of intimate apparel. The company was founded in New York in 1946 by the late Frederick Mellinger. Inspired by the glitz of Hollywood, Mellinger moved the company west a year later and helped popularize innovations such as the push-up bra.

The agreement with Knightsbridge also ends Frederick’s yearlong quest for a buyer. The search began last June.

The new owners will continue to operate the company’s stores and its mail-order business under the Frederick’s of Hollywood name, Frederick’s said.