Abercrombie and Fitch back in fashion as takeover rumours prompt share price recovery

 
Alys Key
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Abercrombie & Fitch - UK Flagship Store Opens
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Shares in casual clothes retailer Abercrombie and Fitch opened 10.26 per cent higher on the New York Stock Exchange today, after it emerged that the company has hired bankers to handle a potential sale.

It opened at $13.97, then peaked at $14.25 a quarter of an hour after the open before settling around the $14 mark.

Abercrombie's share price has dropped over the past year from a high of $27.40 last May to $12.67 yesterday.

But market interest perked up today after sources told Reuters that the brand has hired bankers Perella Weinberg Partners (PWP) to field takeover interest from other retailers.

The brand has been hurt by competition from lower-priced retailers in recent years. In January, the company announced 150 job cuts at its corporate headquarters and said it would allow the leases of around 60 US stores to expire.

The company operates approximately 900 stores under these brands across North America, Europe, Asia and the Middle East. Its flagship store on London's Savile Row has caused controversy as historic inhabitants of the area worried it might lower the tone.

It also has subsidiary brands Hollister & Co for the teen market and Abercrombie Kids.

Abercrombie and Fitch and PWP declined to comment.

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