NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Engaged Capital, an investment firm specializing in small and mid-cap North American equities and beneficial owner of approximately 400,000 shares of the common stock of Abercrombie & Fitch Co. (“Abercrombie” , “ANF” or the “Company”) (NYSE: ANF), today responded to an announcement from Abercrombie & Fitch that it had entered into a new employment agreement with CEO Michael Jeffries.
Glenn W. Welling, CIO & Managing Member of Engaged Capital said:
"We are disturbed that upon learning of broad shareholder support for change in Abercrombie’s leadership, the Board’s reaction was to ignore the information and re-sign Mr. Jeffries. This decision appears to be made without any substantive discussion with shareholders – a rushed response, less than one week after receiving our letter. We consider this an outright dereliction of the Board's fiduciary duties. This action is further proof that our Board exists to serve one master, Mr. Jeffries, instead of the shareholders that elected them.
In light of the Board’s troubling actions, Engaged Capital is considering all options available to it as shareholders in order to hold the Board accountable for its decisions."
About Engaged Capital:
Engaged Capital, LLC, (“Engaged
Capital”) was established in 2012 by a group of professionals with
significant experience in activist investing in North America and was
seeded by Grosvenor Capital Management, L.P., one of the oldest and
largest global alternative investment managers. Engaged Capital is a
limited liability company owned by its principals and formed to create
long-term shareholder value by bringing an owner’s perspective to the
managements and boards of under-valued public companies. Engaged Capital
manages both a long-only and long/short North American equity fund.
Engaged Capital’s efforts and resources are dedicated to a single
investment style, “Constructive Activism” with a focus on delivering
superior, long-term, risk-adjusted returns for investors. Engaged
Capital is based in Newport Beach, California.