Board drama at Abercrombie & Fitch

Engaged Capital, an investment firm specializing in small and mid-cap North American equities and stockholder of Abercrombie & Fitch Co., has named five nominees for the Abercrombie & Fitch board of directors.

The nominees are Alexander P. Brick, former CEO of Specialty Retail Group; Robert D. Huth, former CEO of David’s Bridal; Michael W. Kramer, former COO of J.C. Penney; Diane L. Neal, former CEO of Bath & Body Works; and Glenn W. Welling, CIO and managing member of Engaged Capital.

In a statement, Engaged Capital said Abercrombie incumbent directors have a record of wasteful capital spending and blatant disregard for stockholders. The statement specifically cites the recent contract extension of CEO Michael Jeffries, despite Engaged Capital sending a letter to the board asking that he be replaced and without speaking with any major stockholders.

“We need a board of independent leaders who can set a new direction for Abercrombie,” said Welling. “For far too long, stockholders have suffered under the failed leadership of a board that has lacked the independence necessary to properly act as our fiduciaries.”