Abercrombie & Fitch Investors: Looking to Oust the CEO?
Posted Sunday December 8, 2013 1:44 PM GMT
Abercrombie & Fitch has been no stranger to controversy, and in an effort to boost the label’s negative image, investors are calling for CEO Mike Jeffries to step down.
The condescending-statement slinging figurehead drug A&F into a world of trouble earlier this fall when he said Abercrombie’s clothes are only for “cool, good-looking” individuals. Revelations later came to light on how much pressure employees were put under to stay thin and literally squeeze themselves into the brand’s apparel.
To top it all off, A&F then released a graphic tee with the slogan “# more boyfriends than t.s.” — aka Taylor Swift. Nobody disses TSwift … nobody.
Needless to say, Jeffries has attracted an onslaught of trouble for the already struggling entity, who reported a first quarter loss of $7.2 million earlier this year. So, it comes as no surprise that company bigwigs are looking to oust the current CEO after his contract expires in February 2014.
Engaged Capital, which owns nearly 400,000 shares of Abercrombie, sent out a letter on Tuesday (December 2) making it known they’re not happy with who’s in charge.
“Investors in Abercrombie have endured poor performance due to poor leadership for far too long. The Board needs to come to the same conclusion that everyone else already has – it is time for new leadership at ANF,” the letter reads. ”The renewal of Mr. Jeffries’s employment contract would be a direct contradiction to what shareholders want and the Company needs. ANF’s future success will be dependent on the Company’s ability to adapt to a fast changing retail environment, carefully manage expenses, and efficiently allocate capital. We urge the Board to immediately commence a CEO search for candidates with relevant retail apparel and turnaround experience or consider a sale of the Company.”
Stay tuned to DIY Fashion for further developments in this story.