Abercrombie & Fitch suspends payments to former CEO after sex trafficking allegations

Mike Jeffries is considered the modern founder of A&F, who transformed the brand from a bankrupt sporting goods chain into a multi-billion dollar retailer aimed at teens. During his two decades at the helm of the company starting in the 1990s, he led the company’s global expansion and created spinoff brands including Hollister and Gilly Hicks. Mr Jeffries resigned in 2014 following a decline in sales and left with a retirement plan valued at around $25m (£20.5m), according to company filings with the ‘era. Under the plan, A&F said it was entitled to monthly payments for life. totaling about $1 million a year, the documents add. This voluntary company retirement benefit – known as the Supplementary Executive Pension Scheme – is on top of his standard pension. Records show Mr. Jeffries received payments as recently as this year. A&F said Supplementary Pension Scheme payments to Mr Jeffries had been suspended, but it could not comment further due to ongoing litigation. In a statement released following the BBC’s initial investigation, the corporation said it had hired an “external law firm” to independently investigate the allegations raised. She added that the brand’s current management team and board of directors were “unaware of the allegations of sexual violence.” misconduct” by Mr. Jeffries and that she has “zero tolerance for abuse, harassment or discrimination of any kind.”