Early life[edit]

Jeffries grew up in Los Angeles, the son of Donald R. Jeffries, who owned a chain of party supply stores.[2][4] Jeffries attended Claremont Men's College and the London School of Economics before receiving an MBA from Columbia Business School in 1968.[1][2][4] In 1971, Jeffries married Susan Hansen,[4] and they have a grown son.[2]

Career[edit]

Early career[edit]

In 1968, Jeffries joined the management training program at Abraham & Straus, a Brooklyn department store which was owned by the umbrella corporation Federated Department Stores, which was rebranded Macy's in 1994 after that property was acquired by Federated. He worked for 12 years at Abraham & Straus, before moving to Bullock's in Los Angeles, owned by Federated, as executive vice president for merchandising. He then worked for three years at Federated headquarters in Cincinnati, Ohio.[5]

In 1984, Jeffries founded Alcott & Andrews, a brand targeted at career women.[5] The store fell into bankruptcy in 1989 due to over-expansion and closed,[6][7] with the New York Times noting that the store offered "too little variety in its merchandise."[8]

After the Alcott & Andrews bankruptcy in late 1989, Jeffries worked in merchandising at Paul Harris, a Midwest clothing chain that also went bankrupt, in early 1991.[2][8][9]

Abercrombie & Fitch Co.[edit]

Further information: Abercrombie & Fitch
The chain store design in the early 1990s

Jeffries was hired in 1992 by Les Wexner (CEO of LBrands, then named The Limited) to invigorate Abercrombie & Fitch.[10] The company, founded in 1892, had been purchased by Limited Brands in 1988 after bankruptcy.

Jeffries is considered to have been the main architect of the companies new brand.[2] It was rebuilt as an upscale apparel retailer for the collegiate, and by the mid-1990s, Abercrombie & Fitch had opened dozens of new stores.[2] By 1996, LBrands was no longer heavily involved with the company, and eventually left it under the management of Jeffries.[citation needed]

During this time, A&F has attracted controversy from different groups such as the feminist movement and the American Decency Association, and a number of lawsuits.[2] An outspoken businessman, Jeffries has been quoted making statements in the press that can be considered controversial.[11] Such comments include his assertion that "We hire good-looking people in our stores. Because good-looking people attract other good-looking people, and we want to market to cool, good-looking people. We don't market to anyone other than that."[11]

In 2004, he made approximately US$25 million with a "stay bonus" of $6 million, which dropped from $12 million after a controversy involving his "excessive compensation".[2] After surveying 2,000 US corporations, the Corporate Library named Jeffries as the "Highest Paid Worst Performer" of 2008, after he received a compensation package valued at $71.8 million.[12] Jeffries refused to lower prices or offer discounts at Abercrombie & Fitch stores during the retail recession until September 2009, after the company posted same store sales losses for 17 consecutive months.[13] Jeffries' employment agreement was set to expire December 31, 2008.[14][better source needed] On December 22, 2008, A&F corporate announced that it had been renewed.[14][better source needed] It expired on February 22, 2014.[14][better source needed]

After a slump in 2008 due to the financial crisis of 2007–2008, sales recovered in 2011.[15] His total compensation in 2011 was estimated at $46,609,075, most of this being in the form of stock options.[citation needed]

As of 2012, Jeffries owned about 2.9% of the company's shares, making him difficult to remove without his consent. At that time, his recent contract called for a payout of over $100 million should he lose his job due to an ownership change.[16]

On December 9, 2013, it was reported Jeffries had agreed to a new contract with A&F that would tie his pay to company performance.[17][18] Also in December, market commentator Herb Greenberg named Jeffries the worst CEO of 2013. Greenberg pointed out that the share price for A&F had collapsed by 40% during the year.[19] This was after Jim Cramer of CNBC had earlier named Jeffries to his "Wall of Shame".[20]

Jeffries was once one of the best-paid CEOs in retail but he saw his compensation shrink 72 percent in 2013. His total pay was $2.24 million in the fiscal year of 2013, which ended February 1. That was down from $8.16 million in the previous year and $48.1 million before that.[21]

On December 9, 2014, Jeffries stepped down as A&F CEO amid mass criticism of the company's performance and 11 straight quarters of negative company comparable-store sales. The shares jumped 8 percent after the move was announced, marking the biggest one-day gain in more than nine months.[21][22]

In 2022, Jeffries' leadership of A&F was the subject of a Netflix documentary, White Hot: The Rise & Fall of Abercrombie & Fitch, which focused on Jeffries' transformation of A&F into an "avatar of exclusivity and soft-core sex appeal." The film's focus is the buildup to a 2003 class-action lawsuit against the company.[23]

Personal life[edit]

Salon.com reported in 2006 that Jeffries is a "gay man"[24] who lives separately from his wife.[2] As of 2013, Jeffries was reported to be living with his partner, Matthew Smith (born c. 1963),[25][26] and three dogs.[16] Smith was more than a romantic partner, he also headed the Jeffries Family Office, an Ohio limited liability corporation that "advocates for the personal interests of Jeffries."[25] At Abercrombie & Fitch, Smith reviewed internal documents and consulted on real estate matters, despite holding no official position in the company or being professionally qualified to handle such matters.[16] Smith's involvement was criticized for being poor corporate governance,[25] and was likely a factor in Jeffries's decision to leave the company in 2014, according to GQ.[15]

Controversies[edit]

In a 2006 interview with Salon, Jeffries stated that his clothing line was exclusively for "cool" people. Moreover, he has said he did not want overweight or unattractive people to wear his clothes.[2] The comments, which came to light in 2013, drew negative publicity and criticism for the company.[27] Jeffries issued a public apology on May 15, 2013, stating that "We are completely opposed to any discrimination, bullying, derogatory characterizations or other anti-social behavior based on race, gender, body type or other individual characteristics".[28]

In October 2012, Bloomberg News first reported on Jeffries' standards for his cabin crew on Abercrombie's Gulfstream G-V Jet, used by Jeffries, Smith and their dogs.[29] The male models who work as stewards aboard the company jet were required to wear Abercrombie-branded polos, jeans, boxer briefs and flip-flops as part of their uniform, as well as a "spritz" of cologne. This information then came to light as a result of a lawsuit that claimed Jeffries fired his own jet pilot in order to replace him with a much younger man.[16] The suit was quickly settled out of court when Jeffries was ordered to testify by the presiding judge.[30] Male house staff for Jeffries, paid for by the Jeffries Family Office, were provided by the same modeling firm that supplies male staff for the company jet.[16]

Sex-trafficking lawsuit[edit]

In 2023, the BBC completed a two-year investigation into several allegations that Jeffries and his cohorts exploited young adult men for sex. The events allegedly occurred in Jeffries's New York residences and at luxury hotels around the world.[26] In October, a few weeks after the BBC report, Jeffries and others were sued in New York by a former model under a civil class action complaint of sex-trafficking.[3][31] The former model alleged that Jeffries and his partner Matthew Smith would look for prospective men on the Internet, provide them with money, drugs and promises of recruitment, and then sexually exploit them, with the explicit understanding their sexual cooperation was the price for the coveted job.[31][3] Per the suit, these practices occurred between at least 1992 to 2014. It estimates that over a hundred young models were possibly victimized. Jeffries, Smith, and the Jeffries Family Office are named in the suit. Jeffries through his lawyers responded with "no comment in the press on this new lawsuit".[3]

Further reading[edit]

References[edit]

  1. ^ Jump up to:a b Earnest, Leslie (October 29, 2002). "A&F Muscling in on Southland Surf Wear Firms". The Los Angeles Times. p. C7. The 57-year-old Jeffries...attended Claremont McKenna College, said company spokesman Tom Lennox.
  2. ^ Jump up to:a b c d e f g h i j k l Denizet-Lewis, Benoit (January 24, 2006). "The Man Behind Abercrombie & Fitch". Salon.com. Archived from the original on April 20, 2022. Retrieved September 15, 2022.
  3. ^ Jump up to:a b c d D'Innocenzio, Anne (October 27, 2023). "Abercrombie & Fitch slapped with lawsuit alleging sexual abuse of its male models under former CEO". The Associated Press. Retrieved October 28, 2023.
  4. ^ Jump up to:a b c "Susan Hansen Sets Nuptials". Society. The New York Times. March 14, 1971. Retrieved April 19, 2022.
  5. ^ Jump up to:a b "Apparel Chain Planned, By Ex-Federated Aide". Business People. The New York Times. June 10, 1983. Retrieved October 28, 2023.
  6. ^ Barmash, Isadore (September 1, 1989). "Alcott & Andrews Seeking Protection From Creditors". The New York Times. Retrieved April 19, 2022.
  7. ^ Barmash, Isadore (October 14, 1989). "Alcott & Andrews to Close Its Stores". The New York Times. Retrieved April 19, 2022.
  8. ^ Jump up to:a b Shaer, Matthew (February 9, 2014). "Why Abercrombie Is Losing Its Shirt". The Cut. Retrieved October 28, 2023.
  9. ^ Laura, Bird (October 7, 1997). "No Detail Escapes the Attention Of Abercrombie & Fitch's Chief". The Wall Street Journal. Retrieved October 28, 2023.
  10. ^ Feller, Madison (April 19, 2022). "Where Is Mike Jeffries, Abercrombie & Fitch's Former CEO, Now?". Elle. Retrieved April 20, 2022.
  11. ^ Jump up to:a b Farfan, Barbara (August 23, 2018). "Quotes from Mike Jeffries, former Abercrombie & Fitch CEO". The Balance—Small Business. Retrieved April 19, 2022. Quotes About His Business Philosophy and Sexualizing a Retail Brand... Protesters speaking out against Jeffries' controversial statements.
  12. ^ Rooney, Ben (September 28, 2009). "Corporate Library 'Highest Paid Worst Performers' 2009". CNN. Retrieved May 12, 2010.
  13. ^ Farfan, Barbara (September 7, 2009). "CEO Mike Jeffries Overvalues His Own Brand and Loses His Cool After Teen Shoppers and Investors Don't Aspire To Abercrombie Any More". Barbara's Retail Industry Blog. Archived from the original on September 12, 2009. Retrieved April 19, 2022 – via About.com.
  14. ^ Jump up to:a b c Abercrombie & Fitch Staff (December 22, 2008). "Abercrombie & Fitch Enters Into New Employment Agreement with Michael S. Jeffries, Chairman and CEO" (Press release). Abercrombie & Fitch Co. Retrieved January 6, 2008.[dead link]
  15. ^ Jump up to:a b Jannuzzi, John (December 9, 2014). "Abercrombie CEO Mike Jeffries is Out, but How Bad Has it Gotten, Really?". GQ. Retrieved May 21, 2021.
  16. ^ Jump up to:a b c d e Maheshwari, Sapna (October 18, 2012). "Models on Abercrombie Jet Had Rules on Proper Underwear". Bloomberg Businessweek. Archived from the original on June 6, 2013. Retrieved May 9, 2013.
  17. ^ Booton, Jennifer. "A&F Doubles Down on CEO Jeffries". FOX Business. Retrieved December 9, 2013.
  18. ^ Karr, Arnold J. (December 9, 2013). "Abercrombie Extends Michael Jeffries' Employment Contract". WWD. Retrieved December 10, 2013.
  19. ^ Greenberg, Herb (December 19, 2013). "And the Worst CEO of 2013 Is...?". TheStreet.com. Retrieved April 19, 2022.
  20. ^ Brodie, Lee (November 14, 2013). "Top CEO lands on Cramer's Wall of Shame". CNBC.com. Retrieved April 19, 2022.
  21. ^ Jump up to:a b Rupp, Lindsey (December 9, 2014). "Abercrombie CEO Leaves Chain After Overseeing Rise and Fall". Bloomberg Business.
  22. ^ Kell, John. "Abercrombie's CEO Mike Jeffries steps down". Fortune. Retrieved December 10, 2014.
  23. ^ O'Sullivan, Michael (April 23, 2022). "What to stream: 'White Hot: The Rise and Fall of Abercrombie & Fitch'". The Washington Post. Retrieved November 18, 2022.
  24. ^ Lowder, J. Bryan (December 11, 2014). "An Ode to Abercrombie". Salon.com. Retrieved September 16, 2022.
  25. ^ Jump up to:a b c Maheshwari, Sapna (May 22, 2013). "Abercrombie Execs Troubled By Involvement Of CEO's Partner". BuzzFeed News (BuzzFeed.com). Retrieved April 19, 2022.
  26. ^ Jump up to:a b Croxford, Rianna (October 2, 2023). "Abercrombie & Fitch ex-CEO accused of exploiting men for sex". BBC Panorama. Retrieved October 2, 2023.
  27. ^ Lutz, Ashley (May 3, 2013). "Abercrombie & Fitch Refuses To Make Clothes For Large Women". Business Insider.
  28. ^ Sozzi, Brian (December 9, 2014). "3 Huge Reasons Abercrombie CEO Mike Jeffries Lost His Job". TheStreet. Retrieved January 16, 2020.
  29. ^ Chittum, Ryan (October 19, 2012). "A CEO's High-Flying Standards". Columbia Journalism Review.
  30. ^ Maheshwari, Sapna (November 21, 2012). "Abercrombie Settles Pilot Lawsuit After CEO Ordered to Testify". Bloomberg Business. Retrieved October 2, 2015.
  31. ^ Jump up to:a b "Bradberry et al. versus Abercrombie & Fitch Co., Michael S. Jeffries, Matthew Smith, and The Jeffries Family Office, LLC" (PDF). United States District Court for the Southern District of New York. October 27, 2023. Retrieved October 28, 2023.

External links[edit]

External image
image icon Photo used in Salon.com interview