Abercrombie takes itself off market
NEW YORK — Abercrombie & Fitch is no longer up for sale, a development that isn’t sitting well with investors.
Shares of the struggling teen clothing retailer plunged 21 percent during Monday trading, touching an all-time low.
Abercrombie said in May, after closing dozens of stores — including its location in Little Rock’s Park Plaza — that it was in talks with several parties about a potential deal. The company said 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 such as Abercrombie. Aeropostale Inc., Wet Seal and others have already sought bankruptcy protection. Sears Holdings last week, after years of closing stores and retrenching, said it would close another 43 unprofitable Sears and Kmart locations.
Abercrombie & Fitch shares fell $2.57 to close Monday at $9.59. Company shares fetched almost 10 times that amount at their height in 2007, just before the recession altered the retail landscape.