The struggling teen retailer's shares plummeted after it said it terminated discussions over a potential sale of itself. Fred Katayama reports.
Abercrombie & Fitch left at the altar. The teen apparel retailer says it ended talks over a potential sale. A source says private equity firm Sycamore Partners was the highest bidder but couldn't meet the company's valuation expectations. The Wall Street Journal reports American Eagle Outfitters and Express had also been interested. Teen apparel retailers have been struggling. Competition from online retailers like Amazon and fast-fashion retailers like H&M and Zara have hit them hard. Phoenix Financial Services chief market analyst Wayne Kaufman: SOUNDBITE: WAYNE KAUFMAN, CHIEF MARKET ANALYST, PHOENIX FINANCIAL SERVICES, (ENGLISH) SAYING: "Now what you see is in fashion, you see a lot of people, they buy something, they see what they want, they send back what they don't want, and Amazon takes everything back. You know, no charges. And so I think the problem is nobody has that crystal ball to really see what the landscape is going to be in five years or so." Several have filed for bankruptcy protection, including American Apparel and Aeropostale. Abercrombie, which also owns the Hollister chain, had to retool because young shoppers no longer craved its logos that once made its clothing a hot brand. Abercrombie shares got slammed at the market open Monday. They've fallen nearly 15 percent since Reuters reported the company was considering a sale.