August 19, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Frederick's of Hollywood Group Inc. (AMEX: FOH) said that it has completed its plan to outsource its remaining manufacturing processes and is in the final stages of consolidating its distribution facilities, which the intimate apparel retailer said will result in a total annual savings of around $2 million.

The company said it has ceased manufacturing at its facility in the Philippines, which it expects will reduce annual costs by around $1.5 million. This is the last step in Frederick's strategy to fully outsource its manufacturing in order to reduce costs and operational risks.

Frederick's said it is also in the final stages of consolidating its retail and wholesale distribution capabilities into its 168,000 square foot facility in Phoenix, Arizona.

As a result, the company will cease operations at its wholesale distribution facility in Poplarville, Mississippi by November 30. The company said it expects to save around $500,000 annually as a result of consolidating its distribution capabilities.

Once the integration is completed, the Phoenix facility will serve as the company's U.S. distribution, customer contact and information technology center.

New York-based Frederick's of Hollywood Group conducts its business through its multi-channel retail division and wholesale division.

Through its multi-channel retail division, Frederick's primarily sell women's intimate apparel, swimwear and related products under its proprietary Frederick's of Hollywood brand through 126 specialty retail stores nationwide, a catalog and an online shop.

Through its wholesale division, Frederick's designs, manufactures, sources, distributes and sells women's intimate apparel throughout the United States and Canada, and sells an range of licensed apparel and accessories globally.

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