Frederick's of Hollywood Group Inc. on Thursday said that its board has accepted an offer to be taken private by a group led by its largest shareholder.

The deal values the Hollywood company at about $11 million. The largest shareholder, Harbinger Group Inc., is a Rochester, N.Y. holding company with holdings that range from Spectrum Brands, owner of the George Foreman Grill and Juiceman brands, to Salus Capital Partners, a financial services company.

Frederick's disclosed in October that its board was considering an offer from then-unnamed shareholders. Harbinger's HGI Funding LLC and other shareholders which combined control 89 percent shares, said they will offer the remaining shareholders 27 cents a share. That's a 50-percent premium to the stock's closing price on Sept. 27, the last trading day before the offer initially was made.

Chief Executive Thomas Lynch, will continue in his post for at least the next three years after the merger closes, the company said.

Frederick's, which was founded in 1946 by Frederick Mellinger, has in recent years struggled against trendier competitors such as Victoria's Secret in Columbus, Ohio, now the nation's largest lingerie retailer. Five Island Asset Management, a unit of Harbinger, gained controlling stake in the company in March.

The 112-store chain last week reported a fiscal first quarter loss of $7.7 million (-20 cents a share) on a 12 percent decline in net sales to $19.7 million.

Shares closed up 6 cents, or 30 percent, to 26 cents on the OTC Markets.

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