Hello. My name is Brian. I'm 42 years old. Like most men around my age, I am embarrassed to admit that when I was in high school and college, I wore a lot of clothes from Abercrombie & Fitch. A lot. Like from head to toe. Cargo pants? Loved them. Tshirts with funny slogans? I'll take 10. Turtle neck sweaters? Yes, please. Puka-shell necklace? Why do you think God gave us a neck in the first place??
The reason I'm embarrassed to come clean about this dark period in my life is two-fold. First, just remembering about what I used to think was the height of dressing "cool" makes me cringe all these years later. Second, it turns out that for around 20 years, including the years when I was a major customer, Abercrombie was run by a creepy CEO named Mike Jeffries. Mike was arrested this morning and charged with sex trafficking.
The 80-year-old former CEO was charged today with running an international sex-trafficking ring while he was the CEO of Abercrombie. The indictment alleges that between 2008 and 2015, Jeffries pressured male models into attending sex parties around the world, misleading them as being modeling shoots and then coercing them into having sex with him and others. According to the indictment, Jeffries and his partner "injected men in their penises with a prescription-grade erection-inducing substance for the purpose of causing men to engage in sex acts in which they were otherwise physically incapable or unwilling." One of the alleged victims estimated that there are dozens and likely over 100 young male victims. A lawyer representing the victims described the acts as "clear sex trafficking of the most heinous kind."
Rise and Fall at Abercrombie
Abercrombie was acquired out of bankruptcy by Leslie Wexner's Limited Brands in 1988. In 1992, Mike was named CEO. He proceeded to oversee the company's rise from an obscure line to an international phenomenon.
In September 1996, Abercrombie went public at a market cap of $1 billion. By the middle of 1999, the company's market cap was $5 billion. The market cap sank back down to $1 billion in 2000, but then slowly climbed back up above $7 billion by May 2007.
Mike stepped down in December 2014. On the day he quit, the company's market cap was in the $1.5 billion range, down from $4 billion a year earlier and $6 billion from two years earlier.
At the time of his retirement, Mike was also entitled to a retirement package worth $27 million, AND the company agreed to pay him $1 million per year as an annual bonus for the rest of his life. Unfortunately for Mike, Abercrombie canceled the $1 million annual bonus in the aftermath of an October 2023 BBC documentary that featured male models who accused him of sexual abuse and sex trafficking during his time as CEO. A lawsuit brought by one of his alleged victims alleged that "dozens and likely over a hundred young models" were victims.
Abercrombie has actually staged an incredible turnaround in recent years without Mike. Its market cap in October 2022 was $800 million. Today it's $8 billion. In June of this year, the company was briefly worth around $10 billion.
BERTRAND GUAY/AFP/Getty Images
During his time running Abercrombie, Mike was one of the highest-paid CEOs in the world. Between 2004 and 2007, he earned more than $30 million a year in salary, bonuses, and stock sales. In 2008, he took home $72 million. In 2009, $36 million. In 2010, $28 million. And in 2011 he took home $48 million. His income dropped to $8 million in 2012 and then "just" $1.5 million in 2013. Total it all up, and that's roughly $283 million in salary and other compensation in just under a decade. Oh, and he owned around 2.4% of the company's outstanding shares. At today's closing price, a 2.4% stake would be worth around $190 million.
Mike is so rich that he employs his very own "family office" – basically a private investment company that is set up just to handle the management of one person's wealth. We currently estimate his total personal net worth to be $300 million.
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The Creepy Private Jet Manifesto
Today's indictment may not be a total shock if you've ever heard about Mike's alleged private jet manifesto that he instituted on the A&F corporate jet during his time as CEO. While he was CEO, Jeffries enjoyed unlimited access to the company's Gulfstream G550.
According to a lawsuit that was filed in 2013 by a pilot who claimed he was fired for being too old, Jeffries had a 40-page set of strict rules (written by Mike's boyfriend) that all crew members were required to follow. The lawsuit was settled out of court for an undisclosed figure, but in the fourth quarter of 2013, the company did disclose a $10 million loss related to "legal charges." Most of the rules were directed at the male flight attendants who were reportedly hired through a modeling agency. Here are some of the alleged highlights:
- 1. The flight attendants must wear Abercrombie jeans, flip-flops, boxer briefs, and polo shirts.
- 2. Flight attendants must respond to all passenger requests with the phrase "No problem," as opposed to "Sure" or "Just a minute."
- 3. Attendants must frequently "spritz" themselves and the plane with Abercrombie cologne.
- 4. Coats can only be worn on the plane when the temperature is 50 degrees or lower, and all polo shirt collars must be flipped.
- 5. When serving meals, attendants must wear black gloves for silverware and white gloves for plates of food.
- 6. The Phil Collins song "Take Me Home" must be played on the plane's sound system whenever taking off for return trips.
- 7. Attendants should constantly ensure that there are no fingerprints anywhere.
- 8. All coats need to be zipped to the fourth button from the bottom. The lowest button should be left undone.
- 9. All hats must have a two-inch thick brim and should sit in the middle of the forehead.
- 10. Attendants who break a rule may be punished with shirtless pushups.
