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

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

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

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of