Private equity sees some shine in

Restoration Hardware

(RSTO)

.

A buyout team led by private-equity firm Catterton Partners agreed to buy the struggling home-goods retailer for $6.70 a share -- more than double the stock's closing price of $2.68 Wednesday. The deal values Restoration Hardware at $267 million.

Shares recently were soaring 138% to $6.38.

Restoration Hardware President, Chairman and CEO Gary Friedman will participate in the deal. In addition, several of the retailer's institutional stockholders have agreed to invest in the transaction or exchange a portion of their stock for equity of the purchaser, Restoration Hardware said.

The company's directors have approved the deal, but the agreement allows for an independent committee to solicit rival proposals until Dec. 13.

Restoration Hardware, based in Corte Madera, Calif., has seen weak financial results for the several quarters as it battles a tough environment for home furnishings. For the first six months of the year, its loss swelled to $21.7 million from $4.7 million a year earlier.

Prior to Thursday's announcement, the stock was trading near 52-week lows. A year ago, shares were trading at a high of $9.36.