Abercrombie & Fitch shares were back in fashion on Wednesday following reports that the struggling teen apparel retailer is holding merger talks with at least two rival chains.
Shares in the company opened some 13 per cent higher this morning after Reuters reported last night that the retailer has hired investment bank Perella Weinberg Partners to field possible takeover approaches.
The stock gave up some of that gain during the day but rose once again to trade 12 per cent higher in afternoon trade after the Wall Street Journal named Express and American Eagle Outfitters as two of the potential suitors.
The US-based teen retailer, which also owns the Hollister clothing brand, has struggled in recent years as teens migrate from the logo-heavy trends of the past decade to designs from the likes of H&M, Zara and Uniqlo. Efforts to turn around sales have been complicated by the tough trading environment for retailers in general.