Struggling Abercrombie strips CEO of chairman role

Teen apparel retailer Abercrombie & Fitch Co stripped CEO Mike Jeffries of his chairman duties, bowing to investor pressure to reduce his control over the struggling company.

Shares rallied 7 percent on Tuesday as the company also announced its abandonment of a shareholder rights plan that aimed to block hostile takeover bids. The company also named three new board members, according to a Reuters report.

Fox News reports former Sears CEO Arthur Martinez has moved into the chairman role.

Read more from Reuters.