• June 17, 2009

Troubled Abercrombie & Fitch says it is pulling the plug on its Ruehl concept, and will shut down all 29 Ruehl stores, as well as its direct-to-consumer businesses. The concept was launched back in 2004, targeting a slightly older demographic -- 22- to-25-year-olds -- with somewhat higher price points.

The New Albany, Ohio-based company says that while it was encouraged by the concept's early performance, it has decided that "given the severe economic downturn and its impact on the retail and consumer sectors, the timing is not right to continue to pursue the further development of Ruehl," which generated a $58 million loss in its most recent fiscal year.

Recently, the company reported that Ruehl's comparable-store sales plunged 33%, while comparable-store sales at its Hollister Co. division dropped 32%, and results at its flagship A&F stores fell 25%.--Sarah Mahoney