Private-equity firms have waited for this moment: Mike Jeffries is no longer in the retailing business.

The controversial chief executive of Abercrombie & Fitch Co. retired Tuesday, clearing the way for any suitors interested in the teen retailer. Jeffries, 70, was long seen as an obstacle to a takeover. At least one buyout firm considered a deal before walking away over concerns about his leadership, a source said in 2012. For buyers wanting to take another look, the stock is just as cheap now.

As the $2 billion chain has lost appeal among teens, Abercrombie's stock price has also deflated and even attracted activist shareholders including Ralph Whitworth. It's been mentioned by retail analysts as a top leveraged-buyout candidate in recent years because the business generates cash, has a valuable brand and needs some sprucing up —hallmarks of LBO targets. With private-equity firms having amassed a record amount of dry powder this year, Jeffries' departure could be the final ingredient needed to forge a deal.