Category: Economy

Abercrombie & Fitch is in the midst of a significant comeback, however the store continues to be being haunted by way of the alleged sins of former leader government Mike Jeffries. 

The corporate was once sued Friday for turning a blind eye to Jeffries’ alleged misconduct, court docket data display. He is accused of working a sprawling intercourse trafficking ring that exploited younger males hoping to grow to be fashions for the emblem. 

The go well with alleges that Jeffries, who is additionally indexed as a defendant, sexually abused a lot of males beneath the guise it could land them coveted modeling contracts. 

It comes simply weeks after BBC revealed an investigation into Jeffries and Abercrombie that made identical accusations. 

In reaction, an organization spokesperson informed CNBC it does no longer touch upon pending litigation. Alternatively, after the BBC tale was once revealed, the corporate mentioned it was once “appalled and disgusted” by way of Jeffries’ alleged conduct. It mentioned it had contacted an out of doors legislation company to behavior an unbiased investigation into the problems BBC raised. 

“The corporate’s present government management group and board of administrators weren’t conscious about the allegations of sexual misconduct by way of Mr. Jeffries,” the corporate mentioned on the time.

“For on the subject of a decade, a brand new government management group and refreshed board of administrators have effectively reworked our manufacturers and tradition into the values-driven group we’re these days. We’ve 0 tolerance for abuse, harassment or discrimination of any sort.”

Brian Bieber, Jeffries’ legal professional, did not deny the claims when contacted by way of CNBC.

“Mr. Jeffries won’t remark within the press in this new lawsuit, as he has likewise selected to not referring to litigation previously. The court docket is the place we will be able to handle this subject,” Bieber mentioned in an e mail.

David Bradberry, who introduced the go well with, claims he was once recruited for a modeling alternative in 2010 and offered to a scout who mentioned he was once running on behalf of the emblem.

“He then made it transparent to David Bradberry that he held the important thing to the following degree within the Abercrombie procedure and that except he let the scout carry out oral intercourse on him, Bradberry would no longer be assembly with Abercrombie or its CEO, Michael Jeffries,” the lawsuit, filed in Long island federal court docket, states. 

Bradberry was once then assaulted by way of the scout and paid, the lawsuit states. 

Quickly after, he was once invited to a casting match at Jeffries’ space within the Hamptons that Bradberry assumed was once a “professional Abercrombie-sponsored serve as” as it integrated a gathering with the CEO and he was once compelled to put on the emblem’s garments for the development, the lawsuit states. 

However as a substitute of a pro casting match, Bradberry was once quickly raped by way of Jeffries and compelled to take poppers, a kind of drug that made him really feel lightheaded, the go well with states. 

“Amidst the confusion led to by way of the poppers, David Bradberry started to concentrate on the 4 older, better, bodily are compatible males who seemed to be safety guards staring at the process within the room,” the lawsuit alleges. 

“Those implementing males, wearing Abercrombie clothes, led to Bradberry to really feel like there was once no manner that he may just depart the room safely or face up to what Jeffries was once tough.” 

Following the development, Bradberry was once flown to Great, France, the place he was once once more compelled to accomplish intercourse acts on Jeffries, the go well with states. 

The lawsuit, which is looking for magnificence motion standing, alleges that identical occasions took place to greater than 100 different sufferers and Abercrombie allowed it to occur. 

Jeffries, who prior to now served because the president of the bankrupt ladies’s retail chain Alcott & Andrews, was once tapped by way of Abercrombie’s former proprietor Leslie Wexner to be the emblem’s CEO in 1992 and produce it again to lifestyles. 

Below his tenure, Abercrombie turned into one of the outstanding names in retail and was once recognized for its sexually charged promoting and shirtless male fashions, who have been often situated outdoor of the emblem’s retail outlets. 

The corporate noticed secure enlargement in profits and gross sales right through that point, however its luck was once quickly overshadowed by way of accusations of discrimination in opposition to its group of workers and claims that its garments have been handiest intended for horny folks. 

In 2004, Abercrombie paid $40 million to settle a category motion lawsuit that accused the corporate of discriminating in opposition to Black, Hispanic and Asian staff. In 2012, it settled a case introduced by way of a former pilot that accused the corporate of age discrimination. 

Following its mid-2000s heyday, Abercrombie advanced a name for racism and being a clothes emblem that was once handiest reserved for positive varieties of folks and misplaced relevancy amongst American customers. 

Jeffries left the corporate in 2014 and Abercrombie has since rebranded itself as an inclusive store beneath CEO Fran Horowitz, who turned into the corporate’s leader government in 2017. 

Not too long ago, Abercrombie has shocked Wall Side road with profits and income that blew previous estimates and has opened new retail outlets, at the same time as different outlets shut doorways and the industrial outlook stays unsure.

The corporate’s stocks have greater than doubled this yr.

Do not omit those CNBC PRO tales: