Abercrombie & Fitch has not confirmed widespread reports that it is entertaining buyout overtures from American Eagle Outfitters and Cerberus Capital Management. That is not stopping retail experts from formulating their opinions on how a combination of the two apparel retailers would function.
It turns out: not very well, in experts’ opinions. Previous examples
of specialty retailers growing into combined chains have not
outperformed, and neither company reported strong performance results
after closing out their respective first quarters.. . . more