Struggling bookstore chain Barnes & Noble (BKS - Get Report) got a boost from Wall Street Thursday following reports that hedge fund Elliott Management is the leading bidder to take the company private. 

A deal could be reached in the coming days, The Wall Street Journal reported. It would result in Waterstones' CEO James Daunt likely taking over as head of the newly private company. Elliott Management purchased Waterstones last year. 

Barnes & Noble has been in a sales process for months.

The company has fallen about 90% from its peak value of $3 billion and currently has a market cap just above $311 million. 

Barnes & Nobel shares shot up 22% to $5.59 per share Thursday afternoon following the report.