Activist hedge fund Engaged Capital called on Abercrombie & Fitch to replace its chief executive officer when his contract ends in February next year. If the retailer would decide keep Michael S. Jeffries in his post, Engaged Capital said the company should put itself on the auction block. The hedge fund is hoping that Abercrombie & Fitch would be able to change its fortunes with a change in its leadership.

In a letter he wrote to the board of directors of the retailer, Engaged Capital managing member Glenn W. Welling said, "We are confident that an independent and objective evaluation of management's performance would result in the conclusion that an immediate leadership change is necessary."According to a report in The New York Times The Dealbook, it was not immediately apparent how much pressure Engaged has over the retailer since it only owns about a 0.5 % stake. However, the report said that the fund's senior executives were able to invest in Abercrombie & Fitch through Relational Investors, their much larger former company.

According to the report, the move by Engaged is the most public one done so far by a shareholder of the retailer whose clothes became a uniform for teenagers more than ten years ago. However, the brand has not been fashionable of late and its stock has plunged 21% in the past 12 months. Engaged Capital thinks that a new leader will be able to revive the allure of the fashion brand.

In an emailed statement to The New York Times The Dealbook, a representative of Abercrombie & Fitch said they welcomed the opinions of all their shareholders. The email said in part, "The Abercrombie & Fitch board and management team are committed to creating value, and we welcome input from all shareholders. The company has had extensive discussions with many of its shareholders, including Engaged Capital, over the past several months. We look forward to continuing our dialogue with shareholders as we execute on our long-term plan."