Changes are afoot at Abercrombie & Fitch, and they could signal an easier—and possibly more likely—buyout of the struggling teen retailer.
The company said Tuesday it will immediately terminate its shareholder rights plan, otherwise known as a poison pill and make changes to its board, including separating the roles of CEO and chairman.
CEO Mike Jeffries had served as its chairman since 1996, and will stay on as CEO and a member of the board. However, Abercrombie added three retail veterans to the board—former Sears CEO Arthur Martinez, Zale Chairman Terry Burman and former Avon CEO Charles Perrin. Martinez will take the chairman role.
Analysts reacted positively to the news, saying the actions show openness and responsiveness to change. The retailer's shares rose about 8 percent in early trading.