Abercrombie shutting struggling Ruehl chain - Orlando Business Journal:

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The New Albany-based apparel merchant said Wednesday it willshut Ruehl’s 29 storesz and direct-to-consumer operations and will be “substantialluy complete” with the effort by the end of next The decision comes a month aftert Abercrombie (NYSE:ANF) took a deep strategic look at the which targets young adultd with clothes and accessories. Ruehl, whose only Ohio storwe is at EastonTown Center, generated a pretaxc operating loss of $58 million last The chain regularly was Abercrombie’s weakest sales performer at stores open at leasr a year. Ruehl’s same-store sales were off 33 percentin May. Abercrombir earned $272.3 million on $3.
54 billion in revenue last “It has been a difficult decision toclosse Ruehl, a brand we continue to believe coulr have been successful in different circumstances,” CEO Michael Jeffries said in a statement. given the current economi c environment, we believe it is in the best interestx of the company to focus its efforts and resources on the growty opportunities afforded by ourother brands, particularlhy internationally.” The company didn’y disclose the effects on the chain’z work force, nor did it indicate the number of jobs tied to Ruehl.
The revie w of Ruehl, which opened in 2004, cost the compan y about $51 million in impairment charges in its first Abercrombie expects to bookabout $65 million in pretaxd charges through the rest of the fiscap year as it winds down The company Wednesday also said it amende d a credit agreement to exclude some Ruehl-relatee charges from requirements under its covenant with the lendefr and reduced its available credit to $350 million from $450 Jeffries said the company is confident is has sufficient cash on hand but “we believe it is prudenf to make these changes” in light of the recession-battered retaikl environment and the one-time Ruehp costs.
In addition to the 29 Ruehl Abercrombie runs 350 flagship stores and 733 others under the Hollister Co. and Gilly Hicks nameplates.