Abercrombie & Fitch suspends funds to ex-CEO after sex-trafficking claims

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Abercrombie & Fitch suspends funds to ex-CEO after sex-trafficking claims

Mike Jeffries is taken into account the modern-day-founder of A&F, who reworked the model from a failing sporting items chain right into a multi-billion-dollar retailer aimed toward youngsters. During his twenty years in cost from the Nineties, he led the corporate’s world growth and created offshoot manufacturers together with Hollister and Gilly Hicks. Mr Jeffries stepped down in 2014 following declining gross sales and left with a retirement package deal valued at round $25m (£20.5m), in accordance with firm filings on the time.As a part of that package deal, A&F stated he was entitled to month-to-month funds for all times totalling about $1m a 12 months, the filings add.This voluntary firm retirement profit – often known as a supplemental govt retirement plan – is along with his normal pension. Records present Mr Jeffries has been receiving funds as lately as this 12 months. A&F stated the supplemental retirement plan funds to Mr Jeffries have been suspended but it surely couldn’t remark additional due to pending litigation. In a press release after the BBC’s preliminary investigation, the corporate stated it had employed an “outside law firm” to independently examine the claims raised.It added that the model’s present govt management group and board of administrators had been “not aware of the allegations of sexual misconduct” by Mr Jeffries and that it has “zero tolerance for abuse, harassment or discrimination of any kind”.

With inputs from BBC

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