American clothing brand Abercrombie & Fitch has enlisted an investment bank to look at its options if it were to sell the fashion company, although this does not mean it will definitely be sold.
Enormous value drop
An Abercrombie & Fitch acquisition was unimaginable several years ago. Only in 2011, its value rose to 5.3 billion dollars (4.9 billion euro), but that is no longer the case. Seeing how it is now only worth 850 million dollars (782 million euro), buyers may be interested. The sales talks have sent its share up instantly.
The brand lost a lot of value over the past few years, because of several issues. About a decade ago, Abercrombie & Fitch and its subsidiary brand Hollister were incredibly popular with younger people. However, as trends changed, the fashion company failed to change accordingly and lost a lot of customers to chains like H&M and Zara. A&F also lagged behind online, largely missing out on that hype.
CEO Michael Jeffries also said several contentious things, like when he felt that only attractive people were allowed to wear Abercrombie & Fitch. He was fired in 2014, but the company failed to find a new CEO until recently, when Fran Horowitz was appointed. She may now actually be the one looking to sell the company.
