Fredrick's of Hollywood Outsources Production, Consolidates Distribution
Frederick’s of Hollywood Group announced it completed plans to fully outsource its manufacturing and is nearing its goal of consolidating its U.S. distribution facilities, which is expected to result in $2 million in annual savings.
The company, which has been gradually outsourcing its manufacturing processes as a cost-saving measure, shuttered a factory in the Philippines, its only remaining facility. The company estimates the move will reduce annual costs by approximately $1.5 million.
Frederick’s, which currently operates two domestic distribution facilities, announced plans to complete a consolidation plan by Nov. 30. The plan calls for the closure of a distribution center in Poplarville, Miss. All retail and wholesale distribution, customer service and information technology will be integrated into the company’s 168,000-square-foot Phoenix facility. Frederick’s expects to save $500,000 annually after centralizing its distribution operations.
“Consolidating the distribution of our products to the Phoenix facility and fully outsourcing our manufacturing will allow us to dedicate more resources to the marketing and design of our products in order to strengthen our brand,” said Thomas Lynch, Frederick’s chairman and chief executive, in a statement.—Erin Barajas
