(Bloomberg) — Sycamore Partners is in talks to acquire struggling drugstore chain Walgreens Boots Alliance Inc., according to people familiar with the matter.

Most Read from Bloomberg

• Brace for a Nationwide Shuffle of Corporate Headquarters

• Cloud Computing Tax Threatens Chicago’s Silicon Valley Dream

• San Francisco, Paris Named Best Cities for Urban Transportation

• A Chicago Skyscraper Cements the Legacy of a Visionary Postmodern Architect

• DC Business Leaders Welcome Return-to-Office Policy Under Trump

The New York-based private equity firm has been having ongoing discussions about a deal to take Walgreens private, said the people, who asked to not be identified because the details aren’t public. It’s possible discussions could fall through without a deal materializing, the people added.

The stock jumped as much as 28% on the news, which was first reported by the Wall Street Journal. That was its biggest single-day gain since at least 1980. Walgreens shares had lost two-thirds of their value over the course of the year through Monday. That’s the worst performance of any stock in the S&P 500.

The stock was up 20% at 1:48 p.m. in New York Tuesday, giving the company a market value of about $9.2 billion.

Representatives for Walgreens and Sycamore Partners declined to comment.

In October, the pharmacy chain said it would be closing some 1,200 outlets over the next three years after posting a $3 billion loss in the fourth quarter on charges related to opioid liabilities and the write-down of an investment in China. The company’s retail division has struggled amid the rise of online retailers like Amazon.com and discount giants Dollar General and Costco.

Walgreens has been a take-private candidate for years. KKR & Co. formally approached the drugstore giant about a deal in 2019 in partnership with current chairman and biggest shareholder Stefano Pessina when the firm had a market value of $56 billion. Sycamore Partners has a history of acquiring retailers that have seen better times, including office supplier Staples Inc. and department-store chain Belk Inc.

—With assistance from Gillian Tan and Cynthia Koons.

(Updates trading in fourth paragraph. An earlier version of this report corrected spelling of KKR & Co. in final paragrapha)

Most Read from Bloomberg Businessweek

• Grand Theft Auto VI Will Rule the Video Game Industry in 2025

• Trump’s Manufacturing Revival Doesn’t Add Up for These Businesses

• Early Adopters Are Ditching Google Search for AI Chatbots

• Trump Agenda Won’t Hurt Global Economy as Much Next Year as in 2026

• Dubai’s Alleged Crypto Scams Are Raking in Billions

©2024 Bloomberg L.P.