Teen retailer Abercrombie & Fitch is exploring a possible sale to another retailer as it fights to remain popular and relevant amid shifting consumer preferences.
The retailer has been struggling for some time, trading at 17-year lows, as teen and Millennial clothing preferences have shifted away from Abercrombie's logo-inspired offerings to more independent and discount clothing, Reuters reports. The news broke Wednesday morning, sending the New Albany, Ohio-based retailer's stocks soaring 12% in early trading to $14.18.
The chain is working with investment banker Perella Weinberg Partners to sift through takeover bids from other retailers.
The retail industry is undergoing a seismic shift as e-commerce competition forces brick-and-mortar players to adapt, resulting in mass store closures and retail bankruptcies exceeding those experienced during the Great Recession. Abercrombie competitors Aeropostale Inc. and Wet Seal have filed bankruptcy in the past two years.
Abercrombie operates 709 domestic locations and 189 international locations, and has a market cap of $862M.
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