Getting Results – A transaction with sophisticated tax issues

JMBM tax lawyers played a key role as members of our lead counsel team for client Frederick’s of Hollywood in its merger with Movie Star Inc. The complex transaction involved significant tax issues related to a $20 million rights offering and a one-for-two reverse stock split, and we structured the tax and financial terms to drive top-line growth, increase gross margins and improve operational efficiencies in the new company. Now called Frederick’s of Hollywood Group Inc. that new entity trades on the American Stock Exchange under the new symbol “FOH” and is projected to generate over $200 million in annual sales.