Former Abercrombie & Fitch Chairman and CEO Mike Jeffries addresses shareholders in the course of the firm’s annual assembly at its headquarters in New Albany, Ohio, on Could 22, 2003.
Will Schilling | By way of Reuters
Abercrombie & Fitch washed his fingers of his former CEO Mike Jeffries after he was arrested for federal sex trafficking expenses, saying in a press release Wednesday that the corporate is “dedicated to completely cooperating with regulation enforcement because the authorized course of continues.”
“As we shared when the allegations have been first made public in October 2023, we’re appalled and disgusted by the alleged conduct of Mr. Jeffries, whose work with Abercrombie & Fitch Co. ended nearly ten years in the past,” an organization spokesperson mentioned in a press release to CNBC.
“Over almost a decade, now we have efficiently reworked our manufacturers and tradition into the values-driven group we’re immediately,” the spokesperson added. “We’ve got zero tolerance for abuse, harassment or discrimination of any type.”
Abercrombie shares fell about 5% on Wednesday.
On Tuesday, Jeffries, who ran the legacy clothes model from 1992 to 2014, alongside along with his accomplice Matthew Smith and one other affiliate, have been arrested on expenses of intercourse trafficking and interstate prostitution that prosecutors say occurred on throughout his tenure at Abercrombie.
Jeffries and Smith are accused of coercing aspiring Abercrombie fashions into sexual acts in change for modeling gigs, amongst different acts.
“Lots of the victims, a minimum of one in every of whom was 19 years outdated, have been financially weak and aspiring to grow to be fashions within the notoriously violent vogue business,” prosecutors wrote in a lawsuit.
“Certainly, among the males they employed had beforehand labored in Abercrombie shops or have been Abercrombie fashions.”
Throughout Jeffries’ tenure, Abercrombie turned recognized for its sexually charged advertising and marketing and efforts to promote solely to youngsters perceived as handsome and funky. However the abuse he allegedly dedicated didn’t grow to be broadly recognized till the BBC revealed an explosive investigation into his practices final 12 months.
Quickly after the Jeffries and Abercrombie investigation was revealed were judged by a person who mentioned he was victimized by the previous CEO in 2010 when he was recruited for a modeling alternative.
Practically a 12 months later, federal prosecutors filed a case in opposition to Jeffries. His legal professional, Brian Bieber, instructed NBC Information on Tuesday that he would reply to the allegations in additional element at a later date.
“We are going to reply to the allegations intimately after the indictment is unsealed and when acceptable, however we plan to take action within the courthouse, not within the media,” Bieber mentioned.
The longtime retailer was ousted by Abercrombie in 2014 after an extended decline in gross sales. Underneath the management of its new CEO Fran Horowitz, Abercrombie is now one of many top performing apparel companies in business. It launched common sizes and denims that have been designed for curvier our bodies, and made it clear in its advertising and marketing that it was not going after one buyer from one sort of racial background.
In a press release, Abercrombie mentioned it helps victims who’ve come ahead.
“Talking up and coming ahead will not be straightforward,” the spokesman mentioned. “Our ideas stay with those that bravely raised their voices as a part of the federal investigation.”
