Vivian D. Labbe
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Vivian D. Labbe in Mergers & Acquisitions,

Abercrombie No Longer In Talks For Sale

Abercrombie & Fitch Co.  shares plummeted as much as 16.4 percent in Monday’s premarket trading on news that it had terminated talks for a potential sale.

The board announced in a press release that the best conceived way to increase shareholder value is through pursuit of its enduring strategy.

“We believe in the prospects for our business and the opportunities for our brands,” Executive Chairman Arthur Martinez said in the announcement. “We are generating solid comp store sales momentum at Hollister and continue to refine and implement strategies to position the Abercrombie brand for revitalized performance.”

The company does not intend to comment further on previous transaction talks.

Since late 2016, Abercrombie fielded interest from multiple suitors, including American Eagle Outfitters  and Express, Inc. , and engaged each in preliminary discussions.

However, many were dubious of acquisition prospects from the start.

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