UPDATE 1-Trans World Entertainment gets buyout proposal from CEO

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Nov 9 (Reuters) - Entertainment-software retailer Trans World Entertainment Corp (TWMC.O) said it got a buyout proposal from its largest shareholder, Chief Executive Officer Robert Higgins, for $5 per share in cash.

The offer price represents a premium of about 29 percent over Trans World's Thursday's closing price of $3.88.

Higgins and his related entities hold about 40 percent of the issued and outstanding shares of Albany, New York-based Trans World, the company said in a statement.

Higgins has also contacted another shareholder, Bryant Riley, to gauge his interest in participating in the deal.

The proposal was made to a special committee, consisting of Trans World's board members, which is helping the company in its ongoing evaluation of strategic options.

The special committee, which has hired Goldman, Sachs & Co. as its financial adviser, has not reached a view on the proposal. (Reporting by Dhanya Skariachan in Bangalore; Editing by Himani Sarkar, Bernard Orr)