Fast Fashion A&F Or Will Be Sold

Global retail downturn

Has not yet subsided, a large number of

The US apparel retailer, who has squeezed out, filed for bankruptcy protection. According to well-informed sources, Abercrombie&Fitch NYSE: (ANF) began to enter the auction process today to accept the tender.

The group's board was initially planned to sell for $14.5 to $15 per share, according to the world clothing shoes and cap network, but the sale price fell to $13.5 per share, affected by its weak performance.

After the announcement, the group's share price fell 2% to $12 per share, with a market value of about $980 million.

In the first quarter of April 29th, Abercrombie&Fitch Group recorded a decline of 3.6% to 661 million US dollars in 17 consecutive quarters, with net losses widening to $61 million 700 thousand, while same store sales fell 3%.

Among them, the core brand Abercrombie & amp; Fitch sales fell 10%, Hollister sales rose 3%.

Group CEO Fran Horowiz admitted in a conference call after the quarterly earnings report that the group has been trying to

In the fierce competition in the clothing market to find a new way out, but in the fast fashion brand and electricity supplier's fierce competition, Abercrombie&Fitch is obviously in a weak position.

Although the advantages in the market no longer exist, Abercrombie&Fitch has attracted many buyers to participate in the bidding. The analysis indicates that the brand's long-term revenue has great market potential, and its market value can reach 2 billion 200 million US dollars.

It is reported that the potential buyers of the most successful acquisition of Abercrombie&Fitch are American Eagle (NYSE: AEO) and private equity fund Cerberus Capital Management.

At the same time, there are private equity fund Sycamore and its rival Express (NYSE: EXPR).

Among them, the private equity fund Sycamore, led by Stefan Kaluzny, is known as one of the most aggressive purchasers in the fashion industry. Now it has been involved in the acquisition of fashion retailers such as Belk, Hot Topic, Jones Apparel, Talbots and The Limited.

It is worth noting that some analysts believe that American Eagle will be more suitable for Abercrombie&Fitch than Express. If American Eagle can win the auction, it will save 100 million to $200 million in indirect costs each year, but the focus is on how American Eagle will integrate two inter group businesses.

Up to now, the market value of American Eagle is about $1 billion 938 million.

While Express is also interested in acquiring it, analysts say that its stock price has dropped to its lowest level, about 6.7 U.S. dollars per share, so it is very unlikely that it will be able to bear the cost of acquiring Abercrombie&Fitch group.

CL King analyst Steven Marotta earlier gave Express shares a neutral rating in the analysis report, and questioned the decision of the brand to acquire Abercrombie&Fitch.

It is worth noting that Express is also one of the objectives of Sycamore's acquisition.

It is reported that Sycamore is also interested in acquiring BCBG Max Azria, which has filed for bankruptcy protection.

Up to now, speakers of Sycamore and Cerberus declined to comment, while Abercrombie&Fitch, American Eagle and Express spokesmen did not respond publicly.

According to statistics, in the first half of this year, nearly 10 fashion brands or retailers have submitted bankruptcy applications, including New York designer brand Bibhu Mohapatra, women's clothing retailer The Limited, Wet Seal and the latest Rue21 filing for bankruptcy applications.

Some analysts have pointed out that the appearance of Guan Dian Chao and the bankruptcy tide may be a bad sign for the global fashion retail market, but at the same time, many new independent brands are sprouting up. Retail giants and private equity funds are constantly seeking suitable buyers, so they can also be seen as a sign of the gradual recovery of the fashion retail market. At present, the new generation of e-commerce channels, which are regarded as new opportunities for market development and the millennial generation of consumers who are full of consumption potential, are also a challenge for fashion retailers.

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