Dec 10 (Reuters) - Story3 Capital Partners has offered

to take scrubs maker Figs private, the private equity

firm's spokesperson said on Tuesday, citing questionable growth

and margin improvement.

Story3 has submitted a cash offer of $6 per share for

Figs, the spokesperson said, valuing the company at over $1

billion.

Figs currently has a market capitalization of nearly

$870 million, according to data compiled by LSEG.

Shares of the company were up 9.2% at $5.60 in extended

trading.

Figs had gone public in 2021 and was valued at $4.57

billion, indicating robust investor interest after the maker of

medical apparel, face masks and shields saw a jump in demand

during the COVID-19 outbreak.

Since the pandemic, however, its sales and profit have

slowed as demand stabilized.

The company is currently in the early stages of a

nearer-term recovery as it works through some execution issues

in a challenging macro-operating environment.

"As a private company backed by Story3's experienced

partners and long-term investment, Figs will be empowered to

accelerate its strategy, focus on innovation, and swiftly

execute initiatives that build on its category leadership,"

Story3's spokesperson told Reuters.

The spokesperson added that Story3 was supported by its

consumer opportunities fund and confirmed committed debt

financing from private equity firm Fortress Investment Group.

Figs did not immediately respond to Reuters' request for

comment.

The Wall Street Journal first reported the news.