NEW ALBANY, OH-Abercrombie & Fitch will close its 29 REUHL operations after receiving board approval. The shuttering of this arm, which includes 29 RUEHL stores. is expected to complete by the end of the fiscal year.

“It has been a difficult decision to close RUEHL, a brand we continue to believe could have been successful in different circumstances. 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,” says Mike Jeffries, CEO and chairman of the board. “While I am disappointed with the ultimate outcome, I am grateful for the effort and commitment the RUEHL team has shown in developing and positioning that brand in the marketplace. In particular, the recent strides made in differentiating and elevating the RUEHL assortment make this an especially difficult decision.”

For the fiscal year that completed at the end of January, RUEHL reported a pre-tax operating loss of $58 million. This total includes a $22 million non-cash impairment charge.

The strategic review of RUEHL lead to $51 million in non-cash, pre-tax impairment charges during Q1. Company officials expect to incur an additional $65 million in pre-tax charges from shuttering the arm.

Simultaneous to this announcement, Abercrombie & Fitch has corrected the existing credit agreement in order to exclude the $65 million charges associated with the RUEHL shuttering.

“We are confident that the Company will continue to generate sufficient cash from operations to fund its liquidity needs,” Jeffries says. “However, in light of the one-time costs associated with exiting RUEHL and the current uncertain economic conditions, we believe it is prudent to make these changes to give us significant cushion in our debt covenants.”

In the US,tThe company owns 350 Abercrombie & Fitch stores, 210 Abercrombie locations, 507 Hollister Co. sites, 29 RUEHL stores and 16 Gilly Hicks locations.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.