BJ's cuts almost 500 jobs and closes 5 stores

Discussion in 'General Preparedness Discussion' started by lotsoflead, Jan 5, 2011.

  1. lotsoflead

    lotsoflead Well-Known Member

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    NEW YORK — BJ's Wholesale Club, a potential takeover target, will shave hundreds of jobs and close five stores by the end of the month, the company said Wednesday.




    Three stores in the Atlanta area will be shuttered, along with one in Sunrise, Fla., and one in Charlotte, N.C., resulting in 380 job cuts.


    The company also says it's cutting 114 corporate-level jobs, 61 of them at the company's Natick, Mass., headquarters and 53 field positions.


    "The five clubs to be closed have historically underperformed and, after careful consideration, we concluded that improvement of their operating results was unlikely," said CEO Laura J. Sen.


    In July, Green Equity Investors revealed that it had acquired 5.1 million shares in BJ's Wholesale, sending the stock rocketing.


    Last month, the private equity firm bought the craft store chain Jo-Ann Stores Inc. for about $1.6 billion. The firm has significant investments in food retailers, including Whole Foods Market Inc. Green Equity is an affiliate of retail investors Leonard Green & Partners, which led the buyouts of a number of retailers including Petco Animal Supplies Inc. and Sports Authority.


    The cuts are "strategic in nature," said Wall Street Strategies analyst Brian Sozzi.


    "Management is trying to portray itself as having the ability to make the difficult decisions required to drive stronger earnings growth perhaps to stay aboard under a new regime, while also displaying hidden value to would-be bidders," Sozzi said
     
  2. rflood

    rflood Well-Known Member

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    Ahh, so this is what happened to the one we had here in Charlotte.
     

  3. Herbalpagan

    Herbalpagan Well-Known Member

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    it's sound business practice to not keep stores that have never been successful. They announced that they will be opening a new one here in September.