(news nation) — Mike Jeffries, the former chief executive of Abercrombie & Fitch, had a long history of problematic behavior in and out of the boardroom before he was indicted Tuesday on multiple sex trafficking charges.
jeffMr Rees, 80, who left Abercrombie in 2014, is best known for his time at the retail brand, which was a sensation in the late 1990s and 2000s before becoming former CEO. The company went bankrupt after suffering poor sales and a wave of controversy.
The former company president, his partner Matthew Smith, 61, and employee James Jacobson, 71, were arrested Tuesday on charges of luring men to sex parties, sometimes under the guise of modeling for Abercrombie. It was done.
The three are charged with sex trafficking and interstate prostitution by 15 anonymous accusers who took advantage of Jeffries' position, wealth and personal staff.
Breon Peace, the U.S. attorney for the Eastern District of New York, described the system as a “casting couch” model in which men who want to appear in Abercrombie ads are trafficked.
Jeffries' attorney, Brian Bieber, told The Associated Press: “Once the indictment is unsealed, we will respond in detail to the allegations where appropriate, but we will do so in court and not in the media.” spoke.
Who is Mike Jeffries?
Jeffries grew up in Los Angeles, where his father owned a chain of party supply stores before going into retail in the 1980s. salon.
He became CEO of Abercrombie & Fitch in 1992 and quickly changed the company's branding from the struggling hunting apparel retailer to what many called highly sexualized images of young models. We set out to rebrand ourselves as a retailer of teen essentials clothing featuring things like:
The brand would feature semi-nude models in tight clothing to appeal to what Jeffries calls the “cool” kids.
“We hire good-looking people in our store because good-looking people attract other good-looking people, and we want to target cool, good-looking people. ” said Jeffries. said About the brand. “We won't sell it to anyone else.”
His vision led to a wave of Abercrombie store openings around the world in the 1990s and early 2000s, with teens finding the brand aspirational.
By 2006, revenue had increased for 52 consecutive quarters and annual profits exceeded $2 billion. NPR Reported.
Mr. Jeffries earned about $25 million in 2004, including a $6 million “residence bonus.” Salon also reported that he rose to become one of the highest-paid CEOs at the time.
But by the mid-2000s, its success waned and sales slumped amid numerous lawsuits and controversies surrounding the brand and Jefferies, the report said. Wall Street Journal.
During the 2007 financial crisis, Jefferies refused to lower prices or offer discounts at Abercrombie stores, even though customer numbers declined.
Sales recovered around 2011, but the brand lost relevance with teenagers, who felt its exclusive message alienated many young people, who now turned to many new brands. It became.
By the time Mr. Jeffries retired in 2014, hedge funds were asking the board to replace him, citing the company's poor performance. Jeffries reportedly left the company with a severance package worth approximately $25 million. BBC.
controversy and litigation
As CEO of Abercrombie, Mr. Jeffries caused a lot of controversy due to some insensitive statements about his ideal customer base.
He wasn't shy about saying this outfit isn't inclusive.
“We want to target cool, good-looking people,” he said. salon. “We don't market to anyone else. Frankly, we go after cool kids. We go after attractive kids from all over America with great attitudes and lots of friends.” Chase. Many people don't belong, and are they absolutely exclusionary?
He added that companies that market to everyone, including “young, old, fat and thin,” are “absolutely vanilla.”
According to a report by NPR, Jeffries also commented on how wholesome the scantily clad teens in the company's ads appear, including one with the caption “Group Sex.” did.
“I think what we express sexually is healthy. It's playful. It's not dark. It's not degrading,” he told Salon.
His comments prompted backlash from several groups, and his company's policies were the subject of numerous lawsuits.
In 2003, black, Latino, and Asian American employees filed suit. class action lawsuit NPR reported that minority applicants have filed lawsuits against the company, claiming they were discouraged from applying or kept out of the public eye for positions they didn't want. The company denied any wrongdoing and later settled the case for $40 million.
In 2023, a former Abercrombie model filed a civil lawsuit against the fashion retailer and Jefferies, alleging that the former CEO was allowed to run a sex trafficking ring during his 22-year tenure. Ta.
“Mr. Jeffries was so important to the brand's profitability that he committed whatever actions he saw fit, including blatant international sex trafficking and mistreatment of future Abercrombie models,” David's lawsuit says. “He was given complete autonomy to carry out his role as CEO in a manner that allowed him to do so.” Mr. Bradbury insisted.
At the time, Jeffries' attorney told NPR that the former CEO had not commented on the accusations.
Who are the other two people indicted along with Jeffries?
Jeffries' boyfriend, Matthew Smith, and his employee, James Jacobson, were also implicated in Tuesday's indictment.
According to the indictment, Mr. Smith and Mr. Jacobsen are employees of Mr. Jeffries' corporation, Jefferies Family Office, which was created to manage the former CEO's personal income and assets.
Little is known about Mr. Smith, but allegations of corporate misconduct by Mr. Jeffries come after an Abercrombie employee accused the former CEO of giving a partner a high role in the company despite not being an employee. became the subject of buzzfeed Reported in 2013.
The newspaper said Smith was involved in a variety of matters large and small, including acting as an enforcer of Jefferies' strict “workstation standards” and was given access to the company's non-public documents.
According to the indictment, Jeffries and Smith hired Jacobson as a recruiter to screen young people who wanted to pursue modeling careers, and then forced or coerced Jacobson into performing sexual acts at events hosted by Jeffries and Smith. He has been accused of
Jacobson is also accused of assaulting some of the men he hired.
He was arrested in Wisconsin, and Jeffries and Smith were arrested in West Palm Beach, Florida.
Mr. Jeffries and Mr. Jacobson are scheduled to be arraigned Friday in federal court in Central Islip, Long Island, before U.S. Magistrate Judge Stephen L. Tiscione.
The Associated Press contributed to this article.
