BJ Looks like my gap sit will not get filled.
Shares of BJ's Wholesale Club Inc. (BJ) surged in premarket trading Wednesday after the New York Post reported private-equity firm Leonard Green & Partners is still interested in acquiring the discount club and may launch a hostile bid if an auction isn't initiated in the coming weeks.
Private-equity interest in the retail sector has picked up in recent months, and Leonard Green has been an especially busy player. The Los Angeles buyout firm first reported a 9.5% stake in BJ's in July, saying it intended to approach the company about going private, recently reached deals for fabric and crafts retailer Jo-Ann Stores Inc. (JAS) and is partnering with TPG Capital on its buyout of J. Crew Group Inc. (JCG).
BJ's shares were up 5.4% to $46.87 in premarket trading. Through Tuesday's close, they have gained 20% from the July announcement.
BJ's declined to comment and a representative for Leonard Green wasn't immediately available.
Citing a source close to the situation, the Post reported BJ's board and management have promised to initiate a sales auction after the holidays and Leonard Green has made it clear it would consider going hostile with a bid.
Membership clubs have been reporting growth as customers look for value amid continued economic worries, but concerns still linger that consumer spending is slowing. Last month, BJ's reported its fiscal third-quarter earnings rose 32% as sales rose and the company had a year-earlier charge related to a legal settlement.
Leonard Green has invested in 53 companies with aggregate value of $44.4 billion, according to its website
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