BJ's Wage and Hour Suit destroys Q3 Numbers...Expansion details...

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We know this story has been re-published throughout the blog, just bringing it to everyone's attention.  The story broke about three weeks ago...

We'll take you through the timetable:

BJ's has an abysmal Third Quarter.  (Read the entire Q3 report at Yahoo!.)

Further research to BJ's Wholesale Club dissatisfying Q3 numbers has BJ's and investors scapegoating the $11.7 Million Dollar wage and hour lawsuit which was settled during the end of the quarter as the main contributer to the terrible Q3 numbers. 

More on the Lawsuit:

Press Release:  http://www.tradingmarkets.com/.site/news/Stock%20News/2663574/

Klafter Olsen & Lesser LLP has reached a $9.3 million settlement of an overtime pay class action lawsuit against BJ's Wholesale Club Inc. (NYSE: BJ). The settlement, which is subject to Court approval, is intended to resolve claims that BJ's misclassified certain Mid Manager employees as exempt from receiving overtime for hours worked in excess of 40 hours per week.

Plaintiffs claim that they were misclassified because their primary responsibilities included hourly duties such as loading and unloading materials, stocking shelves and other activities which are not exempt under federal and state overtime laws Under the settlement, approximately 1,500 current and former Mid Managers employed by BJ's since November 2007 will be entitled to make claims to share in the recovery, based on the number of weeks they were employed by the company. 

From BJ's.com, quote: "The settlement of the lawsuit is not an admission on the part of the Company of any wrongdoing. "

What are your thoughts? Any company wrongdoing here? Lot's of people complain that they do work outside their job classification, which allows companies to take advantage of most workers, what are your thoughts?


As far as chain expansion in the coming months:

"Chain expansion, club renovation, our technology roadmap and team member training and development. Our preliminary expansion plans call for 79 new clubs, including two in Massachusetts, one in Metro New York, one in Orland, Maryland and a club relocation in Rhode Island."

Keep the emails and posts coming,

Another New BJ's Wholesale Club to open in Mass.

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Another plan for BJ's expansion was unveiled today when the company announced yet another 80,000 square foot new store to be opening in 2010.

PITTSFIELD, Mass. — A Braintree developer has announced plans to construct a BJ's Wholesale Club on Hubbard Avenue. It would be the first BJ's in Berkshire County

The Berkrire Eagle says the store will be 88,000 square feet, and provide the community with 120 retail jobs. 

BJ's begins laying foundation for new store in Mass.

This weekend, workers began laying foundation for a new BJ's Wholesale Club in Quincy Massachusetts.  The 85,000 sqft store is slated to be completed by April 2010. 

Elsewhere, BJ's sales announced that its comparable club sales for August 2009 decreased by 6.0%, including a negative impact of 8.2% from lower gasoline prices and volumes. Excluding gasoline, merchandise comparable club sales increased by 2.2%.

In 2008, the Company reported a comparable club sales increase of 15.4% for August, including a contribution from sales of gasoline of 7.7%. Excluding the impact of gasoline, merchandise comparable club sales increased by 7.7%

Yet another new BJ's Wholesale Club in the works?!?

Massachusetts: A Seyon Street site that was once slated for a Lowe’s home improvement store will now be home to a BJ’s Wholesale Club, according to a spokeswoman for the developer of the property.

Diana Pisciotta, spokeswoman for Boston-based Samuels and Associates, said an 117,000-square-foot BJ’s is planned for the 20 Seyon St. location., which the developer will build “by right.”

Read the article here. Construction is planned to be finished by the fall of 2010.

More at Boston.com: BJ's to move into former Raytheon site.

What a month for BJ's, if I'm counting right, that brings the July count of new BJ's developments up to four, and the sixth announcement of new projects since March...What recession??

Oh and they've also just inked a new 5-year contract with Wirpo Bags.