Abercrombie & Fitch says it’s in deal talks
Teen clothing chain Abercrombie & Fitch Co., responding to reports that it was in talks with interested buyers, says it’s in preliminary discussions with several parties about a “potential transaction.”
The company’s statement Wednesday that it had received “expressions of interest” came after news reports this week that the New Albany, Ohiobased chain was in talks with at least two possible buyers. Abercrombie & Fitch says it doesn’t plan to comment again until the discussions are concluded.
Like other teen fashion retailers, A&F has been hurt by changing tastes as teens shop online more or opt for fastfashion purveyors like H&M or Forever 21. In the last year or so, teen retailers Aeropostale Inc., American Apparel Inc. and Wet Seal have filed for bankruptcy.
Abercrombie has tried to tweak its brand to attract new shoppers. It dumped sexy ads and updated its fashions. It’s also closed some stores. But the chain’s sales have stayed weak. A&F is expected to report its fifth straight quarter of declines at established stores, a key metric, when it releases first-quarter results on May 25.
In February, Abercrombie & Fitch had promoted Fran Horowitz from president and chief merchandising officer to CEO. Horowitz replaced Michael Jeffries, who stepped down in 2014 amid much controversy after leading the retailer for more than 20 years.
A&F said in its statement Wednesday that there was “no assurance” the discussions will lead to a definitive agreement or that a transaction will occur.