Abercrombie & Fitch has abandoned considerations for a potential merger, following weeks of speculation over a possible rescue deal.
The struggling fashion retailer’s shares plummeted 16 per cent yesterday after hopes that it could be bought out were “terminated”.
Following 16 consecutive quarters of decline, rival retailers were reportedly circling the US brand to strike a deal. American Eagle and private equity company Cerberus were thought to be poised to table an offer before Monday’s announcement.
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“After a comprehensive review of all relevant factors, with the assistance of our financial advisor, the A&F board of directors determined that the best path to enhance value for stockholders is the rigorous execution of our business plan,” executive chairman Arthur Martinez said.
The retailer has a global estate of over 900 stores, with four in the UK.
It also owns the Hollister fashion chain which is trading more favourably.