Abercrombie & Fitch Chairman and CEO Mike Jeffries addresses shareholders during the company's annual meeting on May 22, 2003 at the company's headquarters in New Albany, Ohio, USA.
Will Schilling | Via Reuters
Abercrombie & Fitch After former CEO Mike Jeffries was arrested on federal sex trafficking charges, the company washed its hands, saying in a statement Wednesday that the company was “committed to cooperating fully with law enforcement as the legal process continues.”
“As we said when the allegations were first published in October 2023, we are appalled and outraged by the alleged conduct of Mr. Jeffries, whose employment with Abercrombie & Fitch Co. ended nearly a decade ago,” a company spokesperson said in a statement CNBC.
“For nearly a decade, we have successfully transformed our brands and culture into the values-driven organization we are today,” the spokesperson added. “We do not tolerate abuse, harassment or discrimination of any kind.”
Shares of Abercrombie fell about 5% on Wednesday.
On Tuesday, Jeffries — who ran the legacy clothing brand from 1992 to 2014 — along with his partner Matthew Smith and another employee were arrested on sex trafficking and interstate prostitution charges that prosecutors say occurred during his tenure at Abercrombie.
Jeffries and Smith are accused of coercing aspiring Abercrombie models into sexual acts in exchange for modeling gigs and other acts.
“Many of the victims, at least one of whom was as young as 19, were financially vulnerable and aspired to become models in the fashion industry, a notoriously brutal world,” prosecutors wrote in a court filing.
“In fact, some of the men they recruited had previously worked in Abercrombie stores or modeled for Abercrombie.”
Under Jeffries' tenure, Abercrombie became known for its sexually charged marketing and its efforts to target advertising exclusively at children who were considered good-looking and cool. However, the abuse he allegedly committed only became widely known when the BBC published an explosive investigation into his practices last year.
Shortly after the investigation was published, Jeffries and Abercrombie were sued by a man who said he was a victim of the former CEO in the 2010s when he was recruited for a modeling job.
Almost a year later, federal prosecutors filed suit against Jeffries. His attorney, Brian Bieber, told NBC News on Tuesday that they would address the allegations in more detail at a later date.
“We will respond fully to the allegations after the indictment is quashed and when appropriate, but we plan to do so in the courthouse – not in the media,” Bieber said.
The longtime retailer was forced out of Abercrombie in 2014 after a long decline in sales. Under the leadership of its new CEO Fran Horowitz, Abercrombie is now one of the industry's best-performing apparel companies. The company has introduced inclusive sizing and jeans designed for curvier bodies, and has made it clear in its marketing that it is no longer targeting a single customer of a particular racial background.
In its statement, Abercrombie said it supports the victims who have come forward.
“It’s not easy to speak up and speak out,” the spokesman said. “Our thoughts remain with those who bravely spoke out during the federal investigation.”
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