CHICAGO, Jan 26 (Reuters) - Claire's Stores Inc said Monday
it expects to issue a press release today regarding market
rumors the company's chief operating officer Leslie Dunavant
was leaving.
"The (stock's) volatility is caused by a rumor we may be
about to announce a significant management change," a spokesman
for the specialty retailer said. "We are likely to be
addressing that issue with a press release before the day is
out." He declined to provide further details.
In afternoon trade, Claire's was down 3-5/8 at 15-15/16 in
consolidated trade on volume of more than 1.7 million shares.
"Dunavant is resigning. That is a rumor," one analyst said.
Another analyst agreed that talk of Dunavant's leaving was
hitting the stock.
"That's one explanation I've heard and there seems to be
some history to support that," he said.
Allan Roness, who follows the company for J.W. Charles,
said even if the rumor turned out to be true, he would maintain
his buy rating on the stock, which he put on it last week.
"I've followed this company many, many years and he
wouldn't be the first guy to go," he said, referring to
Dunavant. "The formula's there and the stores are there."
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