Loss-making ingerie and swimwear retailer Frederick’s of Hollywood is contemplating a sell-off or merger of the business, the company confirmed.

The US group has retained New York-based investment bank Allen & Company to help it in “evaluating and exploring a broad range of strategic alternatives”, it said, including a possible sale or merger of the company.

“Over the past few months, the board has received several inquiries regarding various transactions,” said Thomas Lynch, Frederick’s chairman and CEO.

“We believe it is an appropriate time to formalise the process by engaging a world-class advisor that can assist us in identifying and reviewing a wide array of strategic alternatives that can maximise value for our shareholders.”

The company has set no timeline for the review and said there was non assurance that it would result “in any specific action or transaction”.

Frederick’s sells women’s intimate apparel and swimwear through 117 stores, a catalogue and an online shop.

The company reported a net loss of US$3.5m in its second quarter, as margins fell on nearly flat sales of $32.5m.