Abercrombie & Fitch Co. (NYSE: ANF) is having an overwhelmingly rough day in the market today, and for good reason. News broke that the company has canceled talks with regard to a potential sale. Of course, this led to fear among investors, pushing the value of the stock downward. As is normally the case, our partners at Trade Ideas were the first to alert us to the losses. At the moment (11:00), ANF is trading at $9.64 per share after a loss of $2.52 per share (20.72%) thus far today.
ANF Falls On Talk Termination
As mentioned above, Abercrombie & Fitch is having an incredibly rough day in the market today after announcing that it has terminated talks surrounding a potential sale of the company. Various reports broke this morning that the company has reviewed the potential sale in detail and has decided against it.
The talks surrounding the potential sale of the company started back in May, when several bidders seemed to be interested in the company. This led to a private equity firm known as Cerberus Capital Management working with American Eagle Outfitters to see if they could make a deal. A joint bid was offered, but ANF announced today that, after careful review, it was not interested in the sale.
This is overwhelmingly bad news, as ANF has been taking a dive for some time. In fact, due to the company’s failure to gain traction in its space over the past several years, it announced in May that it would be closing 60 stores in the United States by January of 2018.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching ANF incredibly closely. In particular, we’re interested in the steps the company intends to make to improve sales and revenue now that an acquisition seems to be off of the table. We’ll continue to follow the story closely and bring the news to you as it breaks!
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