Abercrombie takes itself off the block

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 percent 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 said Monday 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 one-time mall mainstays like Abercrombie.

Abercrombie continues to operate a store at Hamilton Place mall in Chattanooga, but the retailer will face new competition this fall when H&M opens at Hamilton Place.

Aeropostale Inc., Wet Seal and others already have 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 it was unclear if it had enough cash to stay in business through the end of the year.

Hudson’s Bay Co., which owns Saks Fifth Avenue and Lord and Taylor, said last month it was cutting thousands of jobs in North America as sales slump.

Abercrombie & Fitch Co., based in New Albany, Ohio, said 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 percent, but they slumped 10 percent at Abercrombie.