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NEW YORK, United States — Abercrombie & Fitch Co., the retailer struggling with three straight quarters of sales declines, separated its chairman and chief executive officer roles and eliminated its stockholder rights plan.
Arthur Martinez will serve as non-executive chairman, the New Albany, Ohio-based company said in a statement today. Michael Jeffries, who had been chairman sine 1996, will continue to serve on the board and as CEO.
Jeffries has been struggling to reconnect with the chain’s customers, who have become less enamored of its fashions and half-naked models, leading to sales drops. Abercrombie investor Engaged Capital LLC has urged the company to start searching for a new CEO and consider selling itself to private-equity buyers.
Martinez serves on the boards of American International Group Inc. and IAC/InterActiveCorp. The company today also named Terry Burman and Charles Perrin to the board effective immediately.
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The stock rose 2 percent to $35.30 at 8:41 a.m. in New York and had declined 31 percent last year.
By James Callan with assistance from Lindsey Rupp; editors: James Callan, Niamh Ring
