Stock prices for The Children's Place Retail Stores Inc. rose on Friday following speculation that the company will be sold.
The company's stock climbed 5.1 percent to close at $23.92.
Media reports of a possible sale came on the heels of steadily declining stock prices for the last year and an internal investigation that prompted an angry letter from the company's former chief executive officer, Ezra Dabah.
Dabah left the company late last month. Disagreements between the former ceo and the retailer went public this week when Dabah sent a letter to the board expressing anger at the representation of his departure from the company.
Dabah asserted in the letter that, since his departure from the company, Children's Place, among other things, has issued "misleading and disparaging press releases" that inaccurately imply that some of its recent financial woes are a result of his integrity.
The company could not be reached for comment.
The Children's Place conducted an internal probe into alleged violations of company policies and procedures by two members of its senior management, including Dabah. The investigation ended Sept. 26 and concluded in both cases that, while the actions in question violated company policy, no personal benefit was obtained and there were no negative effects on the firm, according to company statements.
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