1 Abercrombie & Fitch hires Goldman Sachs: source - IBTimes UK

Abercrombie & Fitch hires Goldman Sachs: source

September 12, 2012 8:56 PM GMT

Abercrombie & Fitch Co has hired Goldman Sachs Group Inc as it works to ward off pressure from investors, a source familiar with the matter said on Wednesday.

The source would not say what the nature of the pressure was or name the investors, but CNBC earlier tweeted that Goldman was hired to help keep activist Relational Investors at bay.

Abercrombie has been dealing with falling sales as its teen clientele has largely taken to so-called fast-fashion retailers such as Forever21, which offer more affordable clothes for more fashion seasons, or to other peers such as American Eagle Outfitters that have done a better job of turning over inventory and styles.

Abercrombie shares were up 4.6 percent at $37.58 on the New York Stock Exchange in late-afternoon trading.

Relational Investors reported a stake of 3.8 percent of Abercrombie's shares as of the end of June.

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The source was anonymous because the talks are confidential.

Goldman Sachs and Abercrombie & Fitch were both not immediately available for comment.

(Reporting by Nivedita Bhattacharjee and Mike Erman in New York; editing by Prudence Crowther)

Copyright 2012 Thomson Reuters. All rights reserved.

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