Abercrombie & Fitch suspends $1million lifetime annual bonus to former CEO Mike Jeffries after sex trafficking allegations and lawsuit claiming fashion brand enabled him to sexually abuse male models

UPDATED: 11:08 EST, 21 November 2023

Fashion giant Abercrombie & Fitch has suspended its annual $1 million annual bonus to disgraced former CEO Mike Jeffries in the wake of a bombshell BBC documentary which saw him accused by male models of sexual abuse and sex trafficking.

In a statement to the BBC on November 21, the brand said that it had come to the decision to cease paying out the bonus. It was paid in addition to Jeffries' standard pension. At the time of his retirement his package was reported to amount to $27 million.

The documentary on the scandal aired on October 2.

The clothing brand has been accused in a new lawsuit of allowing Jeffries, 79, to run a years-long sex trafficking operation alongside his partner Matthew Smith.

On the same day that A&F announced that it would no longer pay Jeffries' bonus, the company raised its annual net sales growth forecast, signaling strong demand for its lifestyle brands heading into the crucial holiday shopping season.

In total, Abercrombie's shares climbed 220 percent in 2023. Also this month, the company added former Nike and Apple executive Arturo Nunez to its board.

Meanwhile, the lawsuit is being brought by alleged victim David Bradberry. His lawyer told the Wall Street Journal the company had a 'willingness to enable a sexually abusive and exploitative environment to drive profits'.

https://www.dailymail.co.uk/news/article-12775603/Abercrombie-Fitch-suspends-1million-lifetime-annual-bonus-former-CEO-Mike-Jeffries-sex-trafficking-allegations-lawsuit-claiming-fashion-brand-enabled-sexually-abuse-male-models.html