Abercrombie takes itself off the block

Shares tumble to 17-year low

Abercrombie & Fitch is no longer up for sale, a development that isn’t sitting well with investors hoping for white knight to rescue the struggling teen retailer.

Shares plunged 21 per cent to a 17-year low Monday.

Abercrombie said in May, after closing dozens of underperforming stores, that it was it in talks with several parties about a potential deal.

The company revealed Monday that it has ended all such negotiations.

More people are shopping at lower-cost, fast-fashion stores like H&M and Forever 21, and that has wreaked havoc on onetime mall mainstays like Abercrombie.

Aeropostale Inc., Wet Seal and others have already sought bankruptcy protection.

Sears last week, after years of closing stores and retrenching, said it would close another 43 unprofitable Sears and Kmart locations.

It said earlier this year that in was unclear if it had enough cash to stay in business through the end of the year.

Abercrombie & Fitch Co., based in New Albany, Ohio, said that sales remain strong at its surf-inspired Hollister brand and is continuing to work on improving the performance at Abercrombie.

In the first quarter, sales at established Hollister stores rose 3 per cent, but they slumped 10 per cent at Abercrombie.

The chain has tried to tweak its brand by dumping the suggestive ads that once defined it, and it has updated its look.

That has yet to turn its fortunes around.

First-quarter losses were wider and revenue slid.