Teen apparel retailer confirms takeover interest

Abercrombie & Fitch may sell itself.



The teen apparel chain on Wednesday confirmed it is in preliminary discussions with several parties regarding a potential transaction with the company.



Abercrombie confirmed the news after Reuters reported that the retailer had hired an investment bank, Perella Weinberg Partners, to field takeover interest from other retailers.



In its statement, Abercrombie said it does not intend to make any further comments on the discussions until they are concluded. It also noted there was no certainty the discussions will lead to a definitive agreement or a transaction.



Similar to other teen retailers, Abercrombie has been challenged in recent years by fast-fashion stores and online competitors. And while the company’s California surfwear-inspired and less pricey Hollister banner has been on the upswing, its core namesake banner is still struggling to turnaround its image with more inclusive themes. In March, the retailer reported its 16th straight quarterly sales decline.



Abercrombie has been cutting costs and downsizing its retail fleet. Earlier this year, it said that it would not renew the leases of approximately 60 U.S. stores. As of the end of January, the company operated 709 stores in the United States and 189 locations outside the United States.