By and  on December 9, 2013

Abercrombie & Fitch Co.'s new employment agreement with chairman and chief executive officer Michael Jeffries came with the beginning of a succession process and a lower price of entry for anyone attempting to buy the company, but it failed to placate the activist investor calling for more sweeping change at the troubled teen retailer.

Facing the Feb. 1 expiration of Jeffries’ current five-year contract and a recent call for his removal from Engaged Capital, owners of about 0.5 percent of the retailer’s stock, A&F’s board Monday gave him a new contract that can be terminated by either party with 12 months’ notice after its first anniversary in February 2015. The board also began a search for two leaders for its brands, one to oversee Hollister and the other the namesake brand and abercrombie kids', designed to expand the pool of possible successors to the controversial 69-year-old ceo.

RELATED STORY: Michael Jeffries' Contract Talks Key to A&F Fate >>

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