Chico's Exploring Possible Sale

Shares of Chico's FAS CHS are trading up over 15 percent in Tuesday's pre-market session following a Financial Times article reporting the the company is exploring a possible sell-off to a private equity firm.

There has not been a final valuation put on Chico's, but according to the Financial Times report, the company will likely seek a 30 percent premium to its $2.36 billion market cap.

People familiar with the situation have cautioned that discussions are still in the early stages and, at this time, it is not certain that a deal will be reached. Furthermore, it is still up in the air as to whether Chico's management is looking for a partnership or a sale of the entire business.

Chico's management declined to comment and has yet to release a statement about any possible deals.

A possible suitor may come in the way of Leonard Green, a private equity buyout group, who recently bought a 1.3 percent stake in the company.