The move would take Chico's from a public company to a private one.
The company has declined to comment on whether it's in talks to go private.
Attempts by the
Chico's hasn't filed any papers with the
"I don't think there is any urgency whatsoever," said
His firm has a small investment in Chico's.
The company's stock price surged Tuesday and climbed again Wednesday, with the chatter about a potential sale. Trading volume also has been up over the past few days.
On Thursday, shares lost some of this week's earlier gains, closing down
"The industry is out of favor so it's somewhat of a value opportunity, which is when private equity firms look to take advantage of the situation, when prices are cheap," Hill said.
Shares have taken a hit from several quarters of disappointing sales results, in a challenging retail environment.
If the retailer is sold, the deal could be valued at more than
Chico's has four brands: Chico's,
"Theoretically if they go private, they are not under the pressure to perform quarter to quarter, with the investment community constantly looking for immediate returns," Hill said. "As an investor, I want instantaneous returns. I want everything to work out perfectly. Unfortunately, that's not reality."
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