Teen apparel retailer Abercrombie & Fitch Co. said it separated the roles of chairman and chief executive officer and abandoned a plan aimed at blocking hostile buyout bids.

Abercrombie shares rose 2 percent in premarket trading.

The move comes more than a month after shareholder Engaged Capital LLC urged the retailer to replace current Chief Executive Mike Jeffries or sell itself.

The company said Jeffries, who has served as chairman since 1996, will continue to serve as its chief executive, while Arthur Martinez has been appointed as non-executive chairman, the company said on Tuesday.