BJ’s Wholesale Club said on Thursday that it had decided “to explore and evaluate strategic alternatives, including a possible sale of the company.”
That only confirms what the market has known for months: that there is an auction going on for the retailer.
BJ’s has hired Morgan Stanley to run the sales process. In November, people briefed on the matter told DealBookk that the auction got under way after the private equity firm Leonard Green & Partners made a takeover overture.
The retailer has been seen as an attractive candidate for a buyout since July, after Leonard Green acquired a 9.5 percent stake. (Leonard Green has also struck deals for Jo-Ann Stores and, with TPG Capital, J. Crew.)
The company has little debt and $65.8 million in cash on hand, according to Capital IQ. Sales at stores open more than a year have been disappointing of late, however. Last month, BJ’s announced plans to close five underperforming stores.
BJ’s, based in Natick, Mass., has 187 warehouse clubs in 15 states. It has a total enterprise value of $2.28 billion.