Abercrombie & Fitch Co. (New Albany, Ohio) announced it will close its 29 Ruehl stores that have struggled to draw sales during the tough economy. The chain delivered high-end apparel to the teen market. Last month, Ruehl reported same-store sales fell 33 percent, while parent company Abercrombie has suffered negative sales for more than a year.
“It’s been a difficult decision to close Ruehl, a brand we continue to believe could have been successful in different circumstances,” says Mike Jeffries, ceo and chairman of the board of Abercrombie & Fitch Co. “However, given the current economic environment, we believe it is in the best interests of the company to focus its efforts and resources on the growth opportunities afforded by our other brands, particularly internationally.”
Ruehl generated a pre-tax operating loss of approximately $58 million for the fiscal year ended January 31, 2009.
The company operates 350 Abercrombie & Fitch stores, 210 abercrombie stores, 507 Hollister Co. stores and 16 Gilly Hicks stores in the U.S., as well as three Abercrombie & Fitch stores, three abercrombie stores and five Hollister Co. stores in Canada, and one Abercrombie & Fitch store and four Hollister Co. stores in the U.K.