Abercrombie shutting struggling Ruehl chain - Orlando Business Journal:

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The New Albany-based apparel merchant said Wednesdayu it willshut Ruehl’s 29 stores and direct-to-consumer operations and will be “substantially complete” with the effort by the end of next The decision comes a month after Abercrombie took a deep strategic look at the which targets young adults with clothes and Ruehl, whose only Ohio store is at Easton Town generated a pretax operating loss of $58 millio last year. The chain regularly was Abercrombie’s weakest sales performer at stores open at leasfa year. Ruehl’s same-store sales were off 33 percenyin May. Abercrombie earned $272.32 million on $3.54 billion in revenue last year.
“Ift has been a difficult decision toclose Ruehl, a brandc we continue to believe coulds have been successful in different circumstances,” CEO Michaekl Jeffries said in a “However, given the current economic we believe it is in the best interests of the company to focus its efforts and resources on the growtj opportunities afforded by our other brands, particularl y internationally.” The company didn’tg disclose the effects on the chain’s work force, nor did it indicater the number of jobs tied to Ruehl. The review of which opened in 2004, cost the company about $51 million in impairment charges in itsfirsft quarter.
Abercrombie expects to book aboutr $65 million in pretax charges through the rest of the fisca l year as it winds down The company Wednesday also said it amended a credig agreement to excludesome Ruehl-related charges from requirements under its covenangt with the lender and reduced its availablwe credit to $350 million from $450 Jeffries said the company is confidenft is has sufficient cash on hand but “wed believe it is prudent to make these in light of the recession-battered retail environmenrt and the one-time Ruehl costs. In additiomn to the 29 Ruehl stores, Abercrombie runs 350 flagship storees and 733 others under the Hollister Co. and Gilly Hicks nameplates.