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Mike Jeffries, who was CEO of Abercrombie & Fitch Co. from 1992 through 2014, was arrested Tuesday and has been charged with 16 counts of sex trafficking and interstate prostitution, according to the U.S. Attorney's Office in the Eastern District of New York. The allegations span from 2008 to 2015 and involve two other defendants, including Jeffries’ romantic partner.
Jeffries’ alleged crimes and leadership of the apparel retailer have been linked, with prosecutors saying he leveraged his “power as the CEO of Abercrombie” to run these enterprises and keep them secret, according to the indictment filed Oct. 17 and unsealed Tuesday.
Specifically, prosecutors allege that men, including at least one as young as 19, were led "to believe that attending the Sex Events could yield modeling opportunities with Abercrombie or otherwise benefit their careers” or that not complying to certain acts could harm their opportunities with Abercrombie.
Breon Peace, U.S. Attorney for the Eastern District of New York, speaks Tuesday during a press conference, announcing the arrest of former Abercrombie & Fitch CEO Mike Jeffries on sex trafficking and interstate prostitution charges.
“Powerful individuals for too long have trafficked and abused, for their own sexual pleasure, young people with few resources and a dream, a dream of securing a successful career in fashion or entertainment,” EDNY’s U.S. Attorney Breon Peace said during a press conference Tuesday. “To anyone who thinks they can exploit and coerce others by using the so-called casting-couch system, this case should serve as a warning — prepare to trade that couch for a bed in federal prison.”
The incidents and behavior outlined in the indictment were brought to law enforcement’s attention via media reports, Peace said. The investigation is ongoing, and Peace and FBI officials urged other victims or people with knowledge of the matter to come forward.
Jeffries and Abercrombie & Fitch Co. also face a civil lawsuit, filed a year ago, under New York and federal human trafficking victim protection and other laws. That complaint describes an operation similar to what is in Tuesday’s criminal indictment. The civil suit, a class action, claims that Abercrombie was not only aware of Jeffries’ alleged sex-trafficking operation but also participated in and benefited from it. The defendants, including Jeffries and Abercrombie, have moved to dismiss the case.
Brian Bieber, attorney for Jeffries, declined to comment on the federal indictment of Jeffries or the class action lawsuit.
"We will respond in detail to the allegations when appropriate, but plan to do so in the courthouse — not the media," he said by email.
Abercrombie & Fitch Co. didn’t immediately return a request for comment on either case.
In recent years the apparel retailer has worked diligently to turn the page on the highly sexualized marketing that was a trademark of Jeffries’ tenure, which often included posters featuring barely clothed male bodies, with the merchandise more of an afterthought. That approach, along with a history of discrimination, was widely blamed for the apparel retailer’s declining sales and relevance in that era, including its place on the American Customer Satisfaction Index of least-liked brands. Despite all that, the company struggled to replace him for years.
Under Fran Horowitz, a longtime merchant who has been CEO since 2017, the retailer and its sibling Hollister brand have bounced back. In its most recent quarter the company reported record Q2 net sales of $1.1 billion, up 21% year over year, with the namesake brand up 26% and net income more than doubling to $135.4 million.
“Ten or so years ago, many had written off Abercrombie & Fitch,” GlobalData Managing Director Neil Saunders said in emailed comments earlier this year. “Today, the company is producing extraordinary results which mark it out as one of the best performers in the retail market.”
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Daphne Howland, Khareem Sudlow
