Chairman Gregory P Flynn has resigned from his post as chairman of value-priced retailer Citi Trends with immediate effect.

Flynn, a principal of private equity outfit Hampshire Equity Partners, arrived after Hampshire acquired a controlling stake in Citi Trends in 1999.

He has also resigned as a director of Citi Trends and said Hampshire was considering selling its remaining stake in the company.

"We have had a strong seven-year relationship with the company and have obviously been very satisfied with the company's success to date," Flynn said.

"Nevertheless, in keeping with Hampshire's business model, we are turning our attention towards other investments.

"We sold a portion of our investment in the company through the company's initial public offering of shares of its common stock in May 2005 and secondary offering of shares of its common stock in January 2006, and are considering potential liquidity options with respect to some or all of our remaining investment."

R Edward Anderson has been appointed to the post of chairman with immediate effect. Anderson, who joined Citi Trends as CEO in 2001, is credited with growing the company from 123 stores then to 250 now.

"Citi Trends has been and will continue to be in very good hands with Ed Anderson at the helm," said Flynn.