Abercrombie & Fitch nominates four new board members

Teen fashion retailer Abercrombie & Fitch has nominated four new independent directors

for election to its board, in a step to appease activist investor Engaged Capital LLC. Chief Executive Officer at A&F, Mike Jeffries, struck an agreement with its investor, which has been campaigning over the past few months for a change at the struggling teen retailer.

Bonnie R. Brooks, Sarah M. Gallagher, Stephanie M. Shren and Diane L. Neal were all retained through a third-party search from that A&F hired to assist in the search process for new independent directors who had relevant experience in the industry. In return for nominating new members to the board, Engaged Capital has agreed to withdraw its notice of nomination of directors for election and to support the company's director nominees.

Bonnie R. Brooks was the former vice chair of Hudon's Bay Co, Sarah M. Gallagher served as president of Ralph Lauren North America E-Commerce division, Stephanie M. Shren as vice chairman and global director of retail and consumer products for Ernst & Young LLP and Diane Neal joins the board as former chief executive of Bath & Body Works.

"Our new director nominees each bring strong and relevant backgrounds, and will add valuable experience and perspective to the Abercrombie & Fitch Board,” commented Arthur Martinez, non-executive chairman of the board in a press statement.

“We are very pleased to have worked constructively with the company to this end and are delighted with the addition of these four new independent directors with significant retail and apparel experience,” said Glenn Welling, founder and CIO of Engaged Capital. “We believe these changes position the reconstituted board to set a new direction for the company and execute upon an agenda focused on shareholder value creation.”

Former board members, Lauren Brisky, Kevin Huvane, Jack Kessler and Liza Lee will not stand for reelection at the annual stockholder meeting. “These actions will further enhance the board and management team's focus, including strengthening the business, executing on the company's strategic plans, and succession planning, as Abercrombie & Fitch moves into the next phase of its growth,” added Martinez.