More Buyout Rumors for BJ's Wholesale Club

What's going to happen to this company when it eventually gets bought out???

Shares of BJ's Wholesale Club Inc. rose Wednesday after a report that two private-equity investors are preparing a joint bid to buy the company.

Representatives for BJ's and Leonard Green did not return calls seeking comment. A spokeswoman for CVC declined to comment on the report.

Shares of BJ's rose $1, or 2 percent, to $48.70 in afternoon trading.

The New York Post also wrote about this rumor: http://www.nypost.com/p/news/business/bj_is_seeking_more_3kjfOFYrLKwKZTodp7I8TK


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Laura Sen took a 17% Pay Cut, still raked in $4M

BJ’s Wholesale Club Inc. CEO Laura Sen’s pay package totaled $4 million in 2010, down more than 17 percent from the previous year.

The Westboro-based retailer disclosed in a regulatory filing today that total compensation for Sen included $982,693 in salary along with $697,811 in performance-based pay and stock awards valued at $2.2 million.

Read more: http://news.bostonherald.com/business/general/view/2011_0406bjs_ceo_sen_made_4m_in_2010_down_17_percent/srvc=home&position=recent

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UPDATE: Happy New Years from BJ's, Now You're Laid Off- BJ's to Cut 500 Jobs

So here's a way nobody wanted to start off their 2011.  Great, happy new years from BJ's everyone had a great holiday season and is enjoying the new year. Over the past few days we've been reading up on some interesting news involving BJ's start to 2011, and wanted to fill you in on the details. Five stores will be closing in the Southeast, which will shave 380 jobs, and another 114 corporate level employees will be cut. 

"The Natick-based chain will close five underperforming stores, in Georgia, Florida, and North Carolina, which will result in the loss of 380 positions by the end of this month."

The stores are listed below, all with the closing date of January 17th.

1. Sunrise, Florida: 3469 North University Drive.  - 99 Employees
   
2. Charlotte, North Carolina:  No clear number of employees to be laid off has been announced, over 65
   
3. McDonough BJ’s Wholesale Club 1990 Jonesboro Rd. McDonough, GA 30253
   
   
4. Powder Springs BJ’s Wholesale Club 2435 East West Connector Austell, GA 30106
   
5. Norcross BJ’s Wholesale Club 6344 Cash Ct. Norcross, GA 30071
   

The way they're wording the closings? "BJ's announces Strategic Actions to Optimize Performance'" [Press Release]

Laura Sen has said that these clubs have underperformed. Though we just came across their December sale numbers which read that sales are up big and comparable sales are up 3.8%

BJ's Wholesale Club, Inc. (BJ: News ), an operator of warehouse clubs, reported that sales for December 2010 grew 7.3% to $1.25 billion from $1.16 billion in December 2009.

The Natick, Massachusetts-based company's comparable club sales for December 2010 increased by 3.8%, including a contribution from sales of gasoline of 2.4%, compared to comparable club sales increase of 4.8% in December 2009.

Sales are great, the company is doing fine, this raises an eyebrow.  Just as we previously noted, this is all a restructuring of "dead weight" (not our words) in order to sell the company.

"Management is trying to portray itself as having the ability to make the difficult decisions required to drive stronger earning growth perhaps to stay aboard under a new regime, while also displaying hidden value to would-be bidders,"- Brian Sozzi, Wall Street Strategies analyst. 

Read more at: Boston.com Also: Boston Herald

Right now, it's all about selling this company, at least that's the way it looks to us.  This flat out sucks, these 'strategic actions' are just the worst way to start the new year.

Related articles

• BJ's Wholesale Club slashes nearly 500 jobs (justjobs.com)
• BJ's Wholesale Club closing 3 stores in metro Atlanta (ajc.com)

BJ's Wholesale Club Stock Up Sharp Today

NY Post Reports a BJ's Possible Takeover:

BJ's Wholesale Club still isn't safe from the clutches of private equity.
Leonard Green & Partners -- a Los Angeles buyout firm that disclosed a 9.5 percent stake in the warehouse chain in July -- remains keen to acquire the retailer and may launch a hostile bid if an auction isn't initiated in the coming weeks, sources told The Post.


Read more: http://www.nypost.com/p/news/business/buying_in_bulk_aP1mhywCsTzLrwANWYdZfI#ixzz19YI3r0DD

BJ's Wholesale Club may face a hostile bid from the takeover firm if the chain does not initiate an auction as planned, according to sources quoted in the New York Post.  Reports are also saying that analysts at Jefferies estimate BJ's could be worth $50 to $55 a share. BJ is up more than 6 percent from yesterday's close.

Happy Holidays!

It's that time of year and we hope everyone has and is having a great holiday season! Fill us in on how you and your stores are being affected by the craziness of shoppers, rumors of the BJ's sale, and all the other dramatics working for BJ's provides-

See you in the new year!


Here's just a few stories to keep you updated with BJ's news:

$9.2 Million Construction Loan for BJ's in Western Massachusetts
"The new BJ's in Pittsfield will satisfy the demand for a warehouse club for much of the Berkshires, as the closest wholesale warehouse club is located 31 miles to the west in Albany, New York"


The Ithaca Journal: County Endorses Financing for BJ's in Lansing
The county approved a payment-in-lieu-of-taxes financing agreement to develop a site with a BJ's Wholesale Club store, senior housing and bird sanctuary in the Village of Lansing. 


BJ's November Revenue Metric Up 5%
Revenue at its stores open at least a year rose 5 % in November with both food and general merchandise sales climbing. 


PETA Urges BJ's to Adopt Less Cruel Method of Chicken Slaughter
PETA has submitted a shareholder resolution encouraging the Boston-based wholesale retailer to purchase all its turkeys from suppliers that use a less cruel method of poultry slaughter. "Bj's should be ashamed that it is lagging behind its competitors in improving conditions for the chickens and turkeys who end up on its shelves."

Is BJ's Wholesale Club For Sale?

Don't know if you all have been catching the rumors like we have in some clubs, but according to multiple reports, BJ's is apparently up for auction.  


BJ's Wholesale Club is rumored to have hired Morgan Stanely to help sell the company after receiving an offer from private-equity firm Leonard Green & Partners LP. Any deal would likely be with private-equity funds and not another retailer. BJ's cash doubled in the second quarter, making it attractive for a takeover. A buyout may be valued at as much as $2.75 billion, and the transaction would be the biggest in the sector since 2007. Leonard Green & Partners has holdings in such retailers as Whole Foods Market Inc., and Petco Animal Supplies Inc. " Month to month, BJ's has been under-performing, it seems like a good candidate for a going-private transaction."


Have any of you heard rumors in your stores?  Has the environment changed at all?


Read the entire story @ Business Week

BJ's In the News: Ground Beef Recall

Hope everyone had a great summer, here is some BJ's news for the months of July and August:

CNN: Company Recalls Ground Beef After E. Coli Reports
The USDA says it believes certain BJ's Wholesale Club stores in Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York  and Virginia received the products. 


Watch a video on the recall at: Ground Beef Recall



Development:
Taunton City Council Gives BJ's Addition the Go-Ahead
Taunton, MA-- The council voted unanimously to allow the completion of a new building adjacent to the existing BJ's Wholesale Club. 

Delaware Business: BJ's Elsmere- Area Store On the Way
The Wholesale club opening is planned for December 2010.


BJ's May Close Store in Westboro
Westboro, MA-- After more than 20-year presence, BJ's may close next year, when the company opens a bigger store less than 2 miles away in Northboro.


BJ's Back in Business After Roof Collapse

Akron, OH-- A BJ's store reopened August 7th after being closed on July 23rd, when a storm damaged its roof. 

Economy:
Price Competition Sinks BJ's Profits
Citing" an intense level of price competition" from discounters and supermarkets, BJ's invested more heavily than expected in its own prices during the second quarter, causing margins and earnings to fall below expectations. 


BJ's Stems Profit Erosion Amid Slowing Sales in Q2
"Going into this year I thought the competitive environment would be a lot more severe as people were trying to gain sales based on the weak environment. But that has not been the case."- Laura Sen, chief executive officer


Downside Purchased on BJ's Wholesale (BJ)
Shares of BJ's Wholesale Club, Inc. are lower on the session by 1.09%. The stock has been basing sideways for the past two months after a sharp pop higher. 


BJ's Wholesale Club July Sales Increase
BJ's Wholesale Club sales for July 2010 increased 2.8% compared to decreased sales of 9.1% in July 2009. 

Here are the results of the poll taken from our last post:

Question: What do you think of BJ's Star of the Year Program?


66% - Its strongly favoritism, I didn't like it
22%- Its legitimate, I love it
13%- It doesn't bother me, I have no opinion


It seems that the majority of you don't agree with the Star of the Year Program. Let us know how you were affected by the Ground Beef Recall by taking our new poll, just to the left of this months post. 




All of the comments from our previous posts are greatly appreciated. We are still receiving feedback on the Wage and Hour Suit story we posted a few months ago: 


Anonymous said that as long as the clubs " hit their numbers ", corporate will not care about day to day issues at the club level...


One anonymous person received a settlement check:  FYI, I got my settlement check today. South Florida.


An anonymous post on the home office: "They don't care about the employees, they just want to run a store with the bare minimum. The more they save the larger the bonus, so sure exploit the few good workers that you do have. If the store was properly staffed, and they stop giving the overtime to a select few then maybe they can manage the building."


Anonymous thinks "In order for BJ's to be a better company, they need to start with the home office."