(Reuters) – At Home Group Inc, a U.S. Domestic décor retail chain is exploring options that include a sale of itself, as the bad overall performance of its inventory has turned it into an acquisition goal; people acquainted with the matter said on Thursday.
The deliberations come because the Plano, Texas-primarily based company is attempting to reinvent its services in the face of growing opposition from different brick-and-mortar outlets and e-trade firms. At Home Group is running with Bank of America Corp to interact with ability buyers, the resources said, cautioning that no deal is positive and asking not to be identified because the matter is private.
The enterprise did now not reply to requests for remark. Bank of America declined to comment. The retailer’s stocks jumped 13 percent on the information and have been up 8 percent at $20.Fifty-three Thursday morning in New York, giving the employer a marketplace capitalization of $1.Three billion. The stock had lost forty percent of its cost inside the final 12 months. At Home Group operates 188 shops in 38 states, promoting the entirety from furnishings, mirrors, rugs, art, and housewares to tabletop, patio, and seasonal décor.
Private fairness firms AEA Investors LP and Starr Investment Holdings LLC floated the corporation in the stock marketplace in 2016. They owned sixteen—6 percent and 9.9 percent of At Home Group, respectively, as of the quit of December. At Home Group said the remaining week that its net income improved by using 23 percentage to $1,17 billion in the three hundred and sixty-five days to Jan. 26, driven via the outlet of 31 new shops.