Clothing retailer Abercrombie & Fitch has hired an investment bank to assess takeover interest. The company shares have surged since the announcement.
Abercrombie has plunged 61% since reaching a 16-month high in March 2016, erasing more than half of its market value. But since announcing its plans to sell has seen a 14 percent rise.
The decision has come at a time when quite a few US retailers are closing stores and online sales continue to dominate the market.
Abercrombie has also made an electronic commerce push, partnering with Asian online retailer Zalora to sell its Abercrombie and Hollister brands.
Abercrombie has hired investment bank Perella Weinberg Partners to handle any potential deal, although there is no certainty that one will occur, according to the Reuters report.
The struggling clothing retailer has had its shares trading at a 17-year low. Making it a possible no-go for any future investors.
The company's operating income shrunk from $72.8 million in 2015 to $15.2 million last year.
Abercrombie & Fitch has a market capitalisation of USD$862 million and has 999 stores globally.