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GNC jumps as company considers a sale

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GNC shares gained nearly 7 percent Monday after the company said it was reviewing strategic and financial alternatives, including a potential sale of the company.

The nutritional products retailer said it is undergoing an evaluation of its current operating plan, and is also considering accelerated refranchising strategies, partnerships and other collaborations, and capital structure optimization, according to a release.

The company is working with Goldman Sachs as financial advisor, and Wachtell, Lipton, Rosen & Katz as legal advisor to assist in the process.

GNC gave no indication of any specific action in its release. Chairman Michael Hines said "We are in the early stages of a broad review and will take the time we need to thoroughly evaluate our opportunities to achieve the best result for our shareholders, business partners, and associates."

This comes after GNC plunged nearly 30 percent last Thursday after the company reported same-store sales declines, and Chief Executive Michael Archbold said its quarterly results were "unacceptable" and the turnaround's progress "insufficient."

GNC shares are down more than 40 percent over the past 12 months.