Sept 12 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
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.
The source was anonymous because the talks are confidential.
Goldman Sachs and Abercrombie & Fitch were both not
immediately available for comment.