Former Abercrombie & Fitch Chairman and CEO Mike Jeffries addresses stockholders in the course of the firm’s annual assembly at its headquarters in New Albany, Ohio, on Could 22, 2003.
Will Shilling | By way of Reuters
Abercrombie & Fitch washed its palms of its former CEO Mike Jeffries after he was arrested on federal intercourse trafficking prices, saying in a Wednesday assertion the corporate is “dedicated to completely cooperating with legislation enforcement because the authorized course of continues.”
“As we shared when the accusations have been first made public in October 2023, we’re appalled and disgusted by the alleged habits of Mr. Jeffries, whose employment with Abercrombie & Fitch Co. ended practically ten years in the past,” an organization spokesperson mentioned in a press release to CNBC.
“For near a decade, we have now efficiently remodeled our manufacturers and tradition into the values-driven group we’re right now,” the spokesperson added. “We’ve got zero tolerance for abuse, harassment or discrimination of any form.”
Shares of Abercrombie have been down about 5% on Wednesday.
On Tuesday, Jeffries — who helmed the legacy attire model from 1992 to 2014 — alongside along with his companion Matthew Smith and one other affiliate, have been arrested on prices of intercourse trafficking and interstate prostitution that prosecutors allege occurred throughout his tenure at Abercrombie.
Jeffries and Smith are accused of coercing aspiring Abercrombie fashions into intercourse acts in alternate for modeling gigs, amongst different acts.
“Most of the victims, a minimum of one in all whom was as younger as 19 years outdated, have been financially weak and aspired to develop into fashions within the style trade, a notoriously cut-throat world,” prosecutors wrote in a courtroom submitting.
“Certainly, a few of the males they recruited had beforehand labored at Abercrombie shops or modeled for Abercrombie.”
Beneath Jeffries’ tenure, Abercrombie turned recognized for its sexually charged advertising and its efforts to market solely to children perceived as handsome and funky. However the abuse he allegedly perpetrated didn’t develop into broadly recognized till the BBC printed an explosive investigation into his practices final 12 months.
Quickly after the investigation was printed, Jeffries and Abercrombie have been sued by a person who mentioned he was victimized by the previous CEO within the 2010s when he was recruited for a modeling alternative.
Practically a 12 months later, federal prosecutors introduced a case towards Jeffries. His lawyer, Brian Bieber, instructed NBC Information on Tuesday it could reply to the allegations in additional element at a later date.
“We are going to reply intimately to the allegations after the Indictment is unsealed, and when applicable, however plan to take action within the courthouse — not the media,” Bieber mentioned.
The longtime retailer was ousted from Abercrombie in 2014 following an extended gross sales decline. Beneath the path of its new CEO Fran Horowitz, Abercrombie is now one of many best-performing attire firms within the trade. It has launched inclusive sizing and denims which can be designed for curvier our bodies, and has made it clear in its advertising that it’s not after a single buyer from one sort of racial background.
In its assertion, Abercrombie mentioned it helps the victims who’ve come ahead.
“Talking up and coming ahead is just not straightforward,” the spokesperson mentioned. “Our ideas stay with those that have bravely raised their voices as a part of the federal investigation.”
