IS ABERCROMBIE & FITCH LOOKING FOR A BUYER?
Ohio-based teen retailer Abercrombie & Fitch is working with an investment bank to field takeover interest from other retailers, according to Reuters.
Abercrombie’s shares are trading at a 17-year low, making it a vulnerable acquisition target. The company has struggled as its logo-stamped t-shirts and sweaters, once popular among teenagers, have lost their fashion appeal.
Abercrombie has hired investment bank Perella Weinberg Partners to handle the takeover approaches, according to Reuters. There is no certainty that any deal will occur.
The company’s operating income shrunk from $72.8 million in 2015 to $15.2 million last year, as fast-fashion competitors and competition from online retailers weighed on its profitability. It operated 709 stores in the United States and 189 stores outside the United States as of the end of January.
While Abercrombie made its mark in the 1990s with its risqué advertising and its large logo on apparel, millennial shoppers have more recently eschewed such heavy branding in favor of more independent style. It redesigned its logo in 2014, and announced a new store concept earlier this year to renew its image and shopping experience.