Hedge Fund Takes On Abercrombie

Dec 4 2013 | 12:33pm 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

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of