### Abercrombie & Fitch Distances Itself from Former CEO Amid Sex Trafficking Charges

Federal prosecutors have received full cooperation from Abercrombie & Fitch as they conduct an investigation into the brand's former CEO, Mike Jeffries, who faces serious charges of sex trafficking and prostitution. "We are appalled and disgusted by the alleged behavior of Mr. Jeffries," a company spokesperson declared in a statement to CNBC.

Jeffries, who led Abercrombie & Fitch from 1992 to 2014, was arrested alongside his partner, Matthew Smith, and an associate. They are accused of coercing aspiring models into sex acts in exchange for the promise of modeling opportunities. The alleged crimes took place during Jeffries' tenure at Abercrombie, targeting financially vulnerable young men, including some as young as 19 years old. Some victims reportedly had previous ties to Abercrombie, either working in its stores or modeling for the brand.

Abercrombie & Fitch emphasized that Jeffries’ connection to the company ended nearly a decade ago and condemned his alleged actions. "For close to a decade, we have successfully transformed our brands and culture into the values-driven organization we are today," the spokesperson said. They further stated that the company maintains "zero tolerance for abuse, harassment, or discrimination of any kind."

Shares of Abercrombie dropped about 5% on Wednesday, reflecting the market's reaction to the unfolding scandal. The accusations against Jeffries gained public attention following a BBC investigation that exposed his alleged misconduct. Subsequently, Jeffries and Abercrombie faced a lawsuit from a man who claimed to have been exploited by Jeffries in the 2010s under the guise of a modeling opportunity.

Brian Bieber, Jeffries' attorney, has indicated that a detailed response to the charges will be forthcoming. "We will respond in detail to the allegations after the Indictment is unsealed, and when appropriate, but plan to do so in the courthouse - not the media," Bieber told NBC News.

Abercrombie has since undergone significant changes under the leadership of current CEO Fran Horowitz. The company has shifted its focus towards inclusivity, offering products like jeans designed for curvier bodies and marketing aimed at a diverse customer base. Abercrombie's current leadership reiterated their support for the victims involved in this case. "Speaking up and coming forward is not easy," stated the spokesperson. "Our thoughts remain with those who have bravely raised their voices as part of the federal investigation."