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A&F shareholde​r calls for replacemen​t for CEO

By FashionUnited

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An Abercrombie & Fitch (A&F) shareholder has requested

that the teen apparel retailer find a successor for its current CEO Mike Jeffries, after his contract expires next year February to help bring around a new direction for the company, as well as boost shareholder confidence on the company board.

If A&F are unable to find a replacement for him, the company should think about selling itself, reported Reuters. Engaged Capital, who owns less than one percent of the company shares, stated in a letter sent to the board on Tuesday that the end of Jeffries contract provided an “important opportunity to set a new direction for the company” and help turn around what has been “a history of underperformance” for the company.

In the letter, Engaged Capital added that “a sale of the company to a private equity buyer may represent the best option for shareholders, however... Mr. Jeffries' presence represents a major stumbling block to a transaction. However, Jeffries current contract entitles a clause which states he shall receive over 100 million dollars if the company changes control.

A&F reported last month that the company expects a tough holiday season, and reported a third quarter decrease in net sales and total US sales.





A&F
Abercrombie
Mike Jeffries