The struggling teen retailer is working with an investment bank to sniff out takeover interest. Fred Katayama reports.
Abercrombie & Fitch may be up for sale. Sources tell Reuters the ailing teen retailer is working with an investment bank to sniff out takeover interest. What could make it attractive is its low valuation. Its shares have fallen 61 percent since March of last year, making the retailer worth $862 million. A&F's shares rocketed higher Monday on news it's assessing takeover interest Reuters reporter Lauren Hirsch broke the story. SOUNDBITE: LAUREN HIRSCH, REPORTER, REUTERS (ENGLISH) SAYING: "There has been chatter. I don't want to say the names because you know ,we're still working out with our sources, but there are some pretty logical combinations that could make sense." The retailer known for its risque advertising was once a stock market darling. Teens loved its apparel sporting its large logo in the 1990s. But heavy branding turns off millennials, and sales sank. Abercrombie & Fitch is now trying to turn itself around, betting on its surfwear-inspired brand, Hollister. Same-store sales there have been flat the past two years - nothing to brag about, but it beats the company's overall declining sales.