Corporate boards will typically tolerate a founder’s eccentricities, and even bad behavior, as long as the business is performing well. But as performance declines, so too does tolerance.
The retailer, which is pursuing a turnaround, conveys a new image in its quarterly filing. “Idolized and respected” have been swapped for “confident and engaging.”
Abercrombie hopes its version of America resonates more in China, as its brands keep losing steam in the U.S. and Europe.
The teen retailer’s stock jumps after exceeding analysts’ low expectations for the fourth quarter, but its stores are still struggling mightily in the U.S. and Europe.
The teen retailer’s future direction will be determined over the next four months.
“This public nomination follows the failure of weeks of private outreach to the board to arrive at a negotiated settlement,” Engaged Capital said in a statement Thursday. Update: Abercrombie says it “will review Engaged Capital’s director nominations as part of its normal process and will present its recommendation with respect to the election of directors in its proxy statement.”
The company announced that Jeffries, CEO since 1992, will no longer be the company’s chairman and that it’s adding three new directors with retail experience to its board. Updates with response from Engaged Capital.
Jonathan Ramsden has gained more influence and decision-making authority at Abercrombie as CEO Mike Jeffries’ hold on the company grows more tenuous, sources told BuzzFeed.
Engaged Capital, which last week sent a nine-page open letter to Abercrombie’s board calling for CEO Mike Jeffries’s ouster, is “disturbed” to learn his contract was extended today.
Controversial Abercrombie CEO Mike Jeffries, whom an activist investor has been pressuring to oust this past week, isn’t going anywhere yet.
Activist firm Engaged Capital fired off an open letter to Abercrombie’s board today saying that Jeffries, whose latest employment contract expires on Feb. 1, needs to be replaced.
Hollister will test stores with glass storefronts in early 2014. Parent company Abercrombie & Fitch noted today that Generations Y and Z don’t covet exclusivity like their predecessors.
Sources tell BuzzFeed that within the 10% comparable sales drop reported last month for Abercrombie’s second quarter, the women’s side of the business plunged 30%. A “meltdown,” one source says.
Teen retailers are all struggling, but Abercrombie did particularly poorly this quarter in the U.S. and online. The company was the target of ridicule across the web for much of the period.
In a tough quarter for rivals American Eagle and Aeropostale, Abercrombie fares no better. CEO blames the economy.
Shareholders expressed their disapproval with the pay packages of Abercrombie & Fitch executives including CEO Mike Jeffries at the company’s recent annual meeting.
Matthew Smith, the life partner of Abercrombie & Fitch CEO Michael Jeffries, wields as much power and influence as any executive at the publicly traded company. Only problem is, he isn’t employed by and holds no official role at A&F, which has raised corporate governance concerns among company executives.
Abercrombie & Fitch’s CEO Mike Jeffries has been under fire for his comments about the brand only being for “cool, good-looking people,” and for not selling plus sizes. Blogger The Militant Baker saw an opportunity to show what Jeffries won’t.
The CEO of Abercrombie & Fitch has made A LOT of people VERY angry over the last month.