Could Children's Place Go Private? (PLCE)

Children's Place Retail Stores, Inc. PLCE is up sharply this afternoon, gaining more than 3%. PLCE has been the subject of rumors that it could potentially go private. Competitor Gymboree went private, and PLCE was recently sent a letter from a major investor asking it to consider strategic alternatives. The company has around $200 million in cash on its balance sheet, and no meaningful debt. It could potentially be a prime target for a leveraged buyout from a private equity firm, like Blackstone (NYSE BX) or TPG. The Children's Place Retail Stores operates as a children's specialty apparel retailer in North America. Disclosure: no position in PLCE