TJX Cos Inc., after long contemplating such a move, is looking to sell its Bob’s Stores division, according to Bloomberg News. Potential buyers include Philadelphia-based private equity firm Versa Capital management, the business newswire said.
TJX has reportedly hired Peter J. Solomon Co., the New York-based investment firm, as part of the process. Both TJX and Versa declined comment on the report.
TJX purchased Bob’s, which now has 34 stores in the Northeast, out of bankruptcy in 2003 for $59 million, but the chain has lost money for four straight years. In the first quarter ended April 26, sales at Bob’s slid 5.4% to $60.6 million from $64 million. Comps fell 3% after a 1% decrease for the year-ago period. The retailer reported a segment loss of $6.9 million in the quarter, slightly more than the $6.6 million deficit endured a year earlier. Last year, Bob’s posted net sales of $310.4 million.
