Two months after Abercrombie & Fitch slapped a “for sale” sign on its tanned, muscled self, the retailer has decided not to sell itself after all.
The retailer announced today that it has terminated all discussions regarding a “potential transaction,” talks that started up in May when the company said it had been chatting with several parties about selling itself.
“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,” said Arthur Martinez, Executive Chairman of the Board of Abercrombie & Fitch Co.
He went on to say the company believes there are opportunities for its brands, and notes that Hollister continues to do well. The company will be working to boost the Abercrombie brand and drive sales.
“We are committed to taking sound, aggressive action to deliver enhanced performance and long-term stockholder value,” Martinez said.
Though the company declined to offer any other information about its decision, Reuters reports that private equity firm Sycamore Partners — which recently snapped up Staples for $6.9 billion — was the closest of any potential suitors to buying Abercrombie, but sources say it couldn’t meet the retailer’s valuation expectations.
This doesn’t mean that Abercrombie will never sell itself, of course, it just means it doesn’t believe that now is the right time to do so.
by Mary Beth Quirk via Consumerist