Abercrombie & Fitch won’t be selling itself after all, and the market isn’t happy about it.
On Monday, Abercrombie said in a statement that it has ended talks about a potential sale of its business, and the news sent shares sliding as much as 21 percent in early morning trading.
The troubled teen retailer had been weighing takeover bids, including one from Cerberus Capital Management and American Eagle Outfitters, and analysts had seen the move as potentially a wise one.
However, after “expressions of interest,” Abercrombie went to far as to start preliminary discussions about a possible transaction, but still decided to press on on its own.
Read more at Sourcing Journal.