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Children's Place Rises on Buyout Hopes

New York City, Children's Place Retail Stores Inc.’s shares rose Friday after a Web site reported the company plans to put itself up for sale, according to the Associated Press.

Fortune.com said the retailer hired investment bank Peter J. Solomon and is circulating financial information to possible buyers, including private equity and apparel firms, citing "two people familiar with the company's plans."

The report is the latest in a string of volatile news for the retailer, beginning in late September when CEO Ezra Dabah resigned after a company probe found he had violated internal policies for securities trades.

The company also said it is the subject of a class-action lawsuit alleging the apparel company misled shareholders.

On Tuesday, the retailer lowered its outlook for the rest of the year, citing a 3% drop in September sales at stores open at least a year as well as merchandise margins pressured by high inventory levels.

And on Thursday, the company said Deloitte & Touche would step down as its auditor after completing the company's delayed annual report for fiscal 2006. The company delayed filing due to the leadership change.

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