Abercrombie shutting struggling Ruehl chain - Houston Business Journal:

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The New Albany-based apparekl merchant said Wednesday it willshut Ruehl’s 29 stores and direct-to-consumer operations and will be “substantially complete” with the effort by the end of next The decision comes a month after Abercrombie took a deep strategic look at the chain, whic targets young adults with clothes and Ruehl, whose only Ohio store is at Eastoh Town Center, generated a pretax operatin loss of $58 million last The chain regularly was Abercrombie’s weakesft sales performer at stores open at least a Ruehl’s same-store sales were off 33 percen in May. Abercrombie earnee $272.3 million on $3.54 billionm in revenue last year.
“It has been a difficulf decision toclose Ruehl, a brand we continuwe to believe could have been successfukl in different circumstances,” CEO Michael Jeffries said in a “However, given the current economic environment, we believr it is in the best interestse of the company to focus its efforts and resources on the growthn opportunities afforded by our other brands, particularly internationally.” The companty didn’t disclose the effects on the chain’s work nor did it indicate the number of jobs tied to The review of Ruehl, which opened in 2004, cost the company about $51 million in impairment charges in its firsyt quarter.
Abercrombie expects to book about $65 million in pretax chargeas through the rest of the fiscal year as it windsadown Ruehl. The company Wednesday also said it amended a credir agreement to excludesome Ruehl-related chargee from requirements under its covenant with the lenderd and reduced its availabler credit to $350 million from $450 million. Jeffrie s said the company is confidentf is has sufficient cash on handbut “we believe it is prudent to make these in light of the recession-battered retaiol environment and the one-time Ruehl costs. In addition to the 29 Rueh l stores, Abercrombie runs 350 flagship stores and 733 others underthe Abercrombie, Hollisterr Co.
and Gilly Hicks nameplates.