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BJ's Mulls Sale of Company

WESTBOROUGH, Mass. — Shares of BJ's Wholesale here shot up nearly 13% last week as the company said it was considering a possible sale of the company, confirming recent speculation that the club-store operator would put itself on the block. In a prepared statement, the publicly traded company said a committee of independent directors has engaged Morgan Stanley to assist in pursuing strategic alternatives,

WESTBOROUGH, Mass. — Shares of BJ's Wholesale here shot up nearly 13% last week as the company said it was considering a possible sale of the company, confirming recent speculation that the club-store operator would put itself on the block.

In a prepared statement, the publicly traded company said a committee of independent directors has engaged Morgan Stanley to assist in pursuing strategic alternatives, including a possible sale.

BJ's has long been the subject of buyout speculation, which intensified last summer when Los Angeles-based private equity firm Leonard Green and Partners acquired a 9% stake in the club-store chain and said it planned to discuss taking the company private.

Reports last week said the company could fetch rival bids from other private investors, who could seek to expand the chain into new markets beyond its current East Coast footprint, which includes 189 stores in 15 states.

In its statement last week, BJ's said there was “no timetable” for the process.

The company also continued to report weaker-than-expected sales, with January same-store sales, including gas, up only 0.3%, compared with 4.99% same-store sales growth for a composite of 31 retailers compiled by Kantar Retail.