US teen fashion company Abercrombie & Fitch said it is no longer looking for a buyer, as talks with suitors have proved unfruitful. The embattled fashion retailer has seen its sales dwindle consecutively for the past fifteen quarters and had announced in May it was in talks for a possible takeover. However, following disappointing offers, the company has decided to revive the ailing brand on its own. Arthur Martinez, the company’s chairman said in a statement “We believe in the prospects for our business and the opportunities for our brands. We are committed to taking sound, aggressive action to deliver enhanced performance and long-term stockholder value.”
As sales in the namesake brand continue to decline, sales in one of its other brands, Hollister, reported an increase in sales of 3 percent. This, however, was not enough to prevent the company’s stock sliding 21 percent after the news came out. A&F reportedly turned down lacklustre bids from Express, American Eagle Outfitters and Sycamore Partners, a private equity firm specialising in retail stores.
The struggles of A&F are similar to those being faced by its competitors, some of which have been bought over or declared bankruptcy within the past couple of years. These brands include American Apparel, Wet Seal, True Religion and Aéropostale. American teenagers have been flocking instead to cheaper, European fast fashion stores such as H&M and Zara. The fashion industry has been busy in 2017 with a number of high-profile mergers including LVMH’s purchase of Christian Dior and Coach’s acquisition of Kate Spade.