The Florida-based company operates 1,084 women's clothing stores in 48 states and owns the brands White House Black Market and Soma, in addition to its namesake line.
The downturn in mid-market retail spending has hurt the business over the past few months, with its shares falling more than 20 per cent since January after disappointing sales.
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Leonard Green, the private equity group, purchased a 1.3 per cent stake in the retailer in April.
The buyout group, which owns stakes in other retailers, including J Crew and Sports Authority, could be a potential buyer for the entire Chico's business.
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A sale of Chico's would come against a backdrop of rising deal-making in the retail sector. US retail mergers and acquisitions totaled $21.8 billion in announced deals for the year to date, more than double for the equivalent period last year, and the strongest start for the sector since 2006, according to data from Thomson Reuters.
Globally, M&A in the retail sector was a total of $50.3 billion for the year to date, an increase of 48 per cent from the same period last year.