BJ’s Wholesale Club (NYSE: BJ), which reportedly is being eyed for a hostile takeover bid, plans to close five underperforming stores, including one in Sunrise, by the end of the month, the company said Wednesday.
Natick, Mass.-based BJ’s also announced plans to restructure its home office and make several management changes.
BJ's is laying off 61 employees at its headquarters, and about 380 people will lose their jobs at the closed BJ's stores, including 99 in Sunrise, according to a notice the company filed with the state.
In addition to the Sunrise store, BJ’s will close three stores in the Atlanta market and one in Charlotte, N.C., by the end of the month.
“Our management team has been working for several months on a strategic plan to optimize our performance and build for the future, thereby enhancing shareholder value," BJ's CEO Laura J. Sen said in a statement. "The five clubs to be closed have historically underperformed and, after careful consideration, we concluded that improvement of their operating results was unlikely. The savings associated with the actions we are announcing today will be invested in new clubs, remodels, and information technology, all of which are vital to our competitiveness, future growth and profitability. We remain committed to the Atlanta, Charlotte and South Florida markets, and will look to expand in those markets if compelling opportunities present themselves."
The announcement comes one week after the New York Post reported that BJ’s is in the sights of a private equity firm that may launch a takeover bid within weeks.
Last week, a BJ’s spokesperson declined to comment on the report.
BJ’s estimated that, taken together, “the total charges associated with the announcements made today will be between $42 million and $44 million after tax, or 78 to 82 cents a share in the fiscal fourth quarter ending Jan. 29."
By by Lisa van der Pool , Boston Business Journal
From: http://www.bizjournals.com/southflorida/news/2011/01/05/bjs-to-shutter-stores-replace-execs.html?ed=2011-01-05&s=article_du&ana=e_du_pub
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