Abercrombie takes itself off the block and shares plunge

NEW YORK — Abercrombie & Fitch is no longer up for sale, a development that isn’t sitting well with investors hoping for white knight to rescue the struggling teen retailer.

Shares plunged 21 per cent to an all-time low in midday trading Monday.

Abercrombie said in May, after closing dozens of underperforming stores, that it was it in talks with several parties about a potential deal. The company said Monday that it has ended all such negotiations.

More people are shopping at lower-cost, fast-fashion stores like H&M and Forever 21, and that has wreaked havoc on one-time mall mainstays like Abercrombie. Aeropostale Inc., Wet Seal and others have already sought bankruptcy protection. Sears last week, after years of closing stores and retrenching, said it would close another 35 unprofitable Sears and Kmart locations. It said earlier this year that in was unclear if it had enough cash to stay in business through the end of the year.

Hudson’s Bay Co., which owns Saks Fifth Avenue, Lord and Taylor, said last month that it was cutting thousands of jobs in North America as sales slump.

Abercrombie & Fitch Co., based in New Albany, Ohio, said that sales remain strong at its surf-inspired Hollister brand and is continuing to work on improving the performance at Abercrombie. In the first quarter, sales at established Hollister stores rose 3 per cent, but they slumped 10 per cent at Abercrombie.

The chain has tried to tweak its brand by dumping the suggestive ads that once defined it, and it has updated its look. That has yet to turn its fortunes around.

First-quarter losses were wider and revenue slid.

Shares fell $2.53 to $9.64 Monday. Company shares fetched almost 10 times that amount at their height in 2007, just before the recession altered the retail landscape.

In another reminder of the vast challenges that all retailers face, Amazon.com kicks off its annual “Prime Day” event at 9 p.m. Eastern on Monday.

According to the latest data from Consumer Intelligence Research Partners, 85 million Americans are now paid members of Amazon Prime, up 38 per cent from this time last year. Those members, according to CIRP, spend $1,300 on average each year, almost twice that of non-members.

Just Posted

Influenza claims two more in Central Alberta

Since flu season began four months ago 16 have died in Central Alberta

Relatives of murdered family critical of killers’ sentences

Open letter to sentencing judge criticizes ruling allowing killers to apply for parole in 25 years

City rolling out Green Carts

Green Carts used for organics, such as yard waste, food scraps and pet waste

Updated: Red Deer gets WHL Bantam Draft and Awards Banquet

WHL will holds its draft and awards ceremony in Red Deer for next three years

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Ottawa vows legislation allowing firms to settle corporate corruption

OTTAWA — The Canadian government is vowing to introduce legislation for corporate… Continue reading

‘Lost Tapes’ series examines Malcolm X through rare footage

ALBUQUERQUE, N.M. — Malcolm X was reviled and adored during his lifetime… Continue reading

Woe, Canada: Germany ousts Canada 4-3

GANGNEUNG, Korea, Republic Of — Germany has knocked Canada out of the… Continue reading

Twenty years later, figure skating’s most famous backflip remains amazing (and illegal)

Figure skating involves spins, jumps, twizzles and a whole host of other… Continue reading

You don’t need to chop like a TV chef to get the job done

Standing in line at the emergency room, makeshift bandage around my finger,… Continue reading

Seychelles swaps debt for groundbreaking marine protection

CURIEUSE ISLAND, Seychelles — With deep blue waters, white sand beaches and… Continue reading

Trump endorses raising minimum age to 21 for more weapons

WASHINGTON — President Donald Trump endorsed stricter gun-control measures Thursday, including raising… Continue reading

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month