Just two weeks after news circulated that Abercrombie & Fitch had been weighing takeover bids, reports say Cerberus Capital Management and American Eagle Outfitters are readying a deal.
The Wall Street Journal says an offer from the private equity firm and the rival retailer is just one of others on the table, though the Cerberus American Eagle deal might be the most appealing. Sources close to the matter expect a deal within the next month, if one emerges.
Abercrombie saw sales drop 5 percent in 2016 to $3.3 billion, marking the fourth straight year of declines, and same stores down by 5 percent. On the other hand, American Eagle saw net revenue increase by 2 percent to $3.61 billion and comp sales up 3 percent for the year.
Amid these developments, American Eagle reported results for the first quartered, ended April 29, which shows continued strength with its California-inspired Hollister brand and continued challenges to its namesake stores.
Read more at Sourcing Journal.