Abercrombie & Fitch Temporarily Stops Payments to Former CEO"
Abercrombie & Fitch Temporarily Stops Payments to Former CEO
Following a BBC investigation, fashion retailer Abercrombie & Fitch has suspended payments to its former CEO.
Abercrombie & Fitch, the renowned fashion retailer, has taken the decision to suspend payments to its former CEO in light of disturbing sex-trafficking allegations, as revealed by a recent BBC investigation. The company has responded swiftly to the claims, demonstrating its commitment to maintaining ethics and integrity within its operations.
The investigation conducted by the British Broadcasting Corporation exposed an alleged sex-trafficking network facilitated by the former CEO, Mike Jeffries, and his British partner Matthew Smith. The network supposedly recruited young men for events held in various global locations, including London, New York, and Marrakesh. Multiple individuals who attended these events have come forward, claiming exploitation and abuse.
Following the BBC's revelations, a civil lawsuit was filed against Abercrombie & Fitch, accusing the company of funding a "criminal enterprise" led by Jeffries and Smith during their tenure from 1992 to 2014. The lawsuit suggests that over 100 men may have been sexually abused by Jeffries, with victims lured under the pretext of becoming Abercrombie models.
In response to the investigation and lawsuit, Abercrombie & Fitch has decided to halt additional retirement income payments to its former CEO. Jeffries had been receiving significant bonus payments amounting to approximately $1 million per year, on top of his regular pension.
The fashion retailer has expressed its deep concern and disgust at the alleged behavior, highlighting its commitment to conducting an independent investigation into the claims. Abercrombie & Fitch has engaged an external law firm to thoroughly examine the allegations.
It is important to note that there is no evidence suggesting the company was aware of the exploitation at the sex events uncovered by the BBC. Abercrombie & Fitch has emphasized its transformation into a values-driven organization under new leadership.
Mike Jeffries, often credited as the architect behind Abercrombie & Fitch's success, played a significant role in reshaping the brand into a global retail powerhouse catering to teenagers. However, these recent allegations threaten to tarnish the company's image and require a transparent and thorough response.
As the investigation unfolds and legal proceedings continue, Abercrombie & Fitch remains committed to upholding its core values and ensuring the fair treatment of its employees and stakeholders. The outcome of this case will undoubtedly have far-reaching implications for the fashion industry and the importance of integrity within corporate governance.