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Most companies do everything they can to keep their brands out of controversies, avoiding trouble at all costs to protect their reputations from being tarnished.
However, no matter how hard these companies try, it's inevitable to steer clear from the damage that outside factors can cause completely or, in some cases, try to hide and avoid red flags to keep up appearances.
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These companies have all faced criticism, and although some have managed to turn it around by creating programs to atone for their wrongdoings, others' troubles are far more complicated than that, as they involve skirting the law and illegal dealings.
Abercrombie & Fitch's biggest nightmare makes a big, controversial return
Just as Abercrombie & Fitch thought it had rebuilt its reputation, its biggest nightmare has returned.
Abercrombie & Fitch had suffered from years of declining sales, but in 2024, the brand finally seemed to have turned around its unpleasant reputation by meeting investor expectations and reaching record numbers in its last reported earnings.
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According to Abercrombie & Fitch's Q2 2024 earnings report, net sales increased by 21% from a year ago, and comparable sales grew by 18%.
Although an impressive turnaround, the fight is far from over for the fashion retailer as its biggest detriment managed to sneak up on it once again.
Abercrombie & Fitch's rise to fame and the turbulent history that followed
Mike Jeffries served as Abercrombie & Fitch's ( (ANF) ) CEO from 1992 to 2014. During his time leading the company, he transformed the brand into a true teen obsession by hypersexualizing the young teen body through its branding and marketing campaigns.
Jeffries focused on targeting an elite group of consumers, which he described as the all-American popular kid who's attractive and fit, and rejected all others who didn't fit that stereotype.
"That's why we hire good-looking people in our stores. Because good-looking people attract other good-looking people, and we want to market to cool, good-looking people. We don't market to anyone other than that," said Jeffries in an interview in 2006.
Because Abercrombie & Fitch banked on its exclusive appeal, teens desired the brand even more, which led to its stardom.
However, this peak didn't stand the test of time, as people began accusing the brand of racism and lack of inclusion.
Abercrombie & Fitch ex-CEO is charged with sex trafficking and interstate prostitution
On Oct. 22, ex-CEO Mike Jeffries and his two associates, Matthew Smith and James Jacobson, were charged and arrested with one count of sex trafficking and 15 counts of interstate prostitution, as announced by prosecutors.
A total of 15 victims came forward, with the youngest being a 19-year-old boy, and most having previously worked at Abercrombie & Fitch stores and/or were aspiring models.
The victims claim that Jeffries and Smith operated an international sex trafficking and prostitution business from 2008 to 2015 in which Jacobson was a recruiter.
Allegedly, the accused organized international "sex events" in England, France, Morocco, St. Bats, New York City, and the Hamptons, in which the victims were paid to travel to the selected locations and tricked into thinking that partaking in unwanted sexual acts could lead to modeling opportunities or advance their careers and if they were to not comply with said acts, this could harm their future.
"The defendants allegedly preyed on the hopes and dreams of their victims by exploiting, abusing, and silencing them to fulfill their own desires, with insidious secret intentions," said FBI Assistant Director in Charge James E. Dennehy.
The victims also claim that in addition to the three accused men, there were also staff members at the events who would supervise and facilitate the illegal acts by providing alcohol, drugs, and other sex-related items.
As for the intimidation tactics to prevent the victims from coming to the authorities, the victims claim that the three accused men hired a full-service security company to conduct background checks, intimidate the victims into surrendering their wallets and cellphones, and administer nondisclosure agreements that they were then forced to sign.
Jeffries, who was arrested in West Palm Beach, FL, appealed that same day and was released on a $10 million bond. Despite being released, he was ordered to house arrest, must wear a GPS tracker, and also surrender his passport to prevent him from fleeing the country without authorization.
Smith, who is Jeffries' romantic partner, was also arrested in West Palm Beach, FL, and Jacobson was arrested in Wisconsin but is now out on a $500,000 bond.
Abercrombie & Fitch's ex-CEO and his long history with serious allegations
Jeffries has been on the authorities' radar for years.
In October 2023, Abercrombie & Fitch and Jeffries were sued over sex trafficking allegations, claiming that the former CEO used the company's name to take advantage of young models and that the company turned a blind eye to this misconduct for years.
Following the investigation, BBC published a report that same year in which 12 men described attending the international sex events hosted by Jeffries and Smith from 2009 to 2015.
The day the arrest was announced, Abercrombie & Fitch's stock declined nearly 14% but settled at a 2.5% decline as of Monday's market close.
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Zara launches a pre-owned fashion initiative in the U.S.
Fast fashion has earned a bad reputation for contributing to environmentally damaging practices. To keep up with the fast pace of its consumers' high demand, it uses low-quality materials and cheap manufacturing to keep prices low while creating massive textile waste.
To reverse the damage it has been causing to the environment for decades, the clothing company Inditex developed a sustainability plan to achieve carbon-neutral emissions by 2040, and this huge announcement might be the step the company needs to take to achieve that goal.
Inditex is a Spanish-based multinational clothing company that owns multiple fast fashion brands, including Bershka, Pull&Bear, Stradivarius, Massimo Dutti, and Zara.
According to Inditex's Sustainability Commitments, the group promises to cut emissions by over 50% by 2030 and attain zero net emissions by 2040 through its commitment to transforming its supply chain, using more eco-friendly materials, and helping improve biodiversity.
Everything there is to know about Zara's pre-owned initiative
On Oct. 22, Zara, an Inditex ( (IDEXY) ) brand, announced the launch of its pre-owned clothing initiative in the U.S., which will offer repair, resale, and donation services in-store and through its online platform.
As stated in Zara's Pre-Owned platform, customers can request repairs and resell their "pre-loved" Zara apparel through the platform.
Additionally, all Zara stores will offer donation services, where customers can donate clothing pieces from Zara and any other brand. In-home pickup will also be available for New York City-based customers.
The initiative has already been launched in 16 markets across the European Union and the U.K., making the U.S. the first one in the Americas.
H&M goes back in time to revive its archived designer collaboration
Inditex is not the only clothing company hopping on the pre-loved train to reduce its environmental footprint and clean its bad reputation; a well-known rival has also joined in on the trend.
H&M is known for launching affordable designer collections by partnering with some of the biggest luxury brands. These collaborations aim to create brand awareness and make luxury more attainable to the regular consumer.
Since its first designer collaboration with Karl Lagerfeld, the former creative director of Chanel, in 2004, H&M has launched multiple successful collaborations, including Versace in 2011, Balmain in 2015, Giambista Valli in 2019, and Paco Rabanne in 2023, to name a few.
However, keeping up with consumers' high demand by constantly launching new styles has landed H&M in one of the top spots for least sustainable apparel companies as it has promoted over-consumption for decades.
To celebrate 20 years since its first luxury designer collaboration, H&M has re-released limited-edition pre-loved items from these partnerships so customers can purchase the iconic pieces while implementing sustainable shopping practices.
The items in the drops have been sourced through partnerships with Sellpy, an online second-hand marketplace, and multiple vintage retailers.
H&M (HNNMY) acknowledges its environmental impact, so it has committed to running its business more ethically, transparently, and responsibly by implementing eco-friendly programs that enable customers to choose a more sustainable lifestyle.
The Garment Collection program, which rolled out in 2013, allows customers to donate their pre-loved items at H&M locations to decrease clothing waste. The company's Take Care program provides its consumers with rental, repair, and second-hand services.
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This pre-loved collection launch is another major step that H&M has taken to show its commitment to more sustainable practices.
These pre-loved pieces launched through a series of drops in seven global H&M stores, with the New York location being the fourth one. Nonetheless, the pre-loved collection pieces will be available online for anyone to purchase on Oct. 31.
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