Abercrombie & Fitch stocks bomb as it abandons merger plans

348
Abercrombie & Fitch stocks

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.

READ MORE: Offer imminent for Abercrombie & Fitch

“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.

Click here to sign up to Retail Gazette’s free daily email newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here