UPDATE: Ruehl is offering 50% off EVERYTHING on their official website, Ruehl.com!
“NEW YORK – Abercrombie & Fitch Co said on Wednesday it will close its money-losing Ruehl chain.
“It has been a difficult decision to close Ruehl, a brand we continue to believe could have been successful in different circumstances,” said CEO Mike Jeffries. “However, given the current economic environment, we believe it is in the best interests of the company to focus its efforts and resources on the growth opportunities afforded by our other brands, particularly internationally.”
In addition to its namesake stores, Abercrombie also runs the Hollister and Gilly Hicks chains.
With the recession eating into discretionary budgets and even wealthy consumers looking for bargains, Abercrombie’s sales have spiraled downward as the company kept its prices high to safeguard its cachet.
Ruehl, which used a Greenwich Village aesthetic to appeal to hip twentysomethings, saw sales at stores open at least a year fall 34 percent in the first quarter.
The 29-store chain generated a pretax operating loss of $58 million during the last fiscal year.”
Source: Reuters