Activist Client Engaged Capital Makes Headlines Following Public Letter to Abercrombie & Fitch Co.
The Wall Street Journal, New York Times DealBook, Yahoo Finance and numerous other national media outlets reported on Engaged Capital’s public letter to the Board of Directors of Abercrombie & Fitch Co. In its letter, Engaged Capital urged the Abercrombie Board to immediately begin looking for a qualified replacement for current Chairman and CEO Michael Jeffries, whose employment contract expires on February 1, 2014. Engaged Capital stated that the underperformance of Abercrombie is a result of a failure of leadership and requested that the Board set a new direction and leadership for the company. Engaged Capital also stated in the letter that the sale of Abercrombie to a private-equity buyer may be the best option for maximizing shareholder value and that Mr. Jeffries’ presence as CEO could make it more difficult for the company to sell itself. Steve Wolosky and Andrew M. Freedman represent Engaged Capital in the Abercrombie matter.