Hedge Fund Takes On Abercrombie

Dec 4 2013 | 1:33pm ET

Hedge fund Engaged Capital has called for the head of Abercrombie & Fitch CEO Michael Jeffries as a prelude to selling the retailer to a private-equity firm.

California-based Engaged said Jeffries, whose contract expires on Feb. 1, is a major stumbling block to a sale of the company and that there's "no qualified successor" lined up. "The board needs to come to the same conclusion that everyone else has—it is time for new leadership at Abercrombie & Fitch," Engaged chief investment officer Glenn Welling wrote.

Abercrombie shares have fallen 25% this year and it is set to miss analysts' earnings expectations for 2013 by a wide margin.

The New Albany, Ohio-based company said it has "had extensive discussions with many of its shareholders, including Engaged Capital," and that it looks "forward to continuing our dialogue with shareholders as we execute on our long-term plan."

Engaged owns less than 1% of Abercrombie's shares.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...