NEW ALBANY, Ohio (AP) — Abercrombie & Fitch is separating its chairman and CEO roles and expanding its board's size. The teen retailer is also terminating its shareholder rights plan.
Such a plan, also known as a "poison pill," is typically used by a company when it is trying to ward off a hostile takeover attempt.
Arthur Martinez, the former head of Sears, was named non-executive chairman. Michael Jefferies, who'd served as chairman since 1996, will remain a director and the CEO.
Abercrombie & Fitch Co. named Martinez plus Terry Burman and Charles Perrin as directors, expanding its board to 12 members. The appointments are effective immediately.
Burman is the former CEO of Signet Jewelers Ltd. and before that was president and CEO of Barry's Jewelers Inc. Perrin is the former chairman and CEO of Avon Products Inc. and previously held the same posts at Duracell International Inc.
Abercrombie shares added 6 percent, or $2.09, to $36.70 in morning trading. The stock is down 26 percent in the past year.
Last month Abercrombie & Fitch announced that it was reworking Jefferies' contract, tying his compensation more closely with company performance.
Jeffries helped establish the company's reputation after arriving in the 1980s, but Abercrombie has struggled recently and Jeffries came under withering fire for comments relating to the type of customer he wants in his store and the fact that the store does not offer plus sizes.