by Christopher Freeburn | January 28, 2014 11:24 am
Struggling apparel retailer Abercrombie & Fitch (ANF) says that Mike Jeffries will no longer serve as its chairman. ANF stock surged almost 6% on the news in Tuesday morning trading.
Jeffries has held the ANF chairmanship since 1996 and is also the company’s CEO. Mike Jeffries will continue as CEO and will retain a seat on the ANF board as a director. The company has tapped former Sears (SHLD) CEO Arthur Martinez as its new non-executive chairman to replace Mike Jeffries, the Associated Press reports.
In addition to removing Mike Jeffries as chairman, ANF is increasing the number of seats on its board, which will now have 12 directors. The move follows previous reports that ANF was restructuring Mike Jeffries’ employment agreement.
Mike Jeffries was quoted in media reports last year saying that he didn’t want to see fat people in ANF stores. The remarks prompted some stakeholders to request his removal.
ANF stock has been battered by falling store sales and traffic. ANF stock has declined by 30% over the past twelve months.
Last year, ANF announced that it would close up to 50 stores in the U.S.
Source URL: http://investorplace.com/2014/01/ceo-mike-jeffries-replaced-abercrombie-fitch-chairman/
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