Frederick’s of Hollywood Group Inc. on Monday said board member Thomas Lynch has been appointed chief executive.

Lynch, 40, has been a director since intimate apparel retailer Frederick’s completed a merger in January 2008 with FOH Holdings Inc. Until December, he was CEO of Fursa Alternative Strategies LLC, one of the company’s significant shareholders. Prior to joining Fursa in February 2007, Lunch was a managing director at Mellon Asset Management and a member of its senior management committee.

“We are confident that with his strong financial, strategic planning and leadership experience, (Lynch) will lead our company through these challenging economic times and facilitate our continuing efforts to reduce operating expenses, capitalize upon the synergies created from the merger and maximize shareholder value,” said Executive Chairman Peter Cole in a statement. Frederick’s has corporate headquarters in New York but most of its operations are in Los Angeles.

Prior to the announcement, the company’s shares closed up 1 cents to 39 cents on the NYSE Alternex.