Abercrombie & Fitch Faces Board Probe After Sex Allegations Against Former CEO
Abercrombie & Fitch Co. has seen a 16% boost in second quarter sales across its brands, but the retailer now faces an investigation into its board's management. The probe follows allegations against former CEO Mike Jeffries.
The investigation, led by Scott + Scott Attorneys at Law, aims to determine if Abercrombie's board and senior management failed to protect shareholders' interests. This comes after a BBC report claimed Jeffries, who retired in 2014, was involved in exploiting men at sex events.
Jeffries, known for creating the definitive wardrobe for 1990s teens, faced criticism closer to his retirement. Abercrombie has hired an outside law firm to investigate the claims against him. However, the lead attorney, Joe Pettigrew, declined to comment. Abercrombie & Fitch Co. has also not responded to requests for comment.
The investigation into Abercrombie's board and management is ongoing. Despite the recent sales growth, the retailer must address these serious allegations to rebuild shareholder trust.
