Bob’s Stores Sold to Private Equity Groups

By Emmaline Harvey

 

TJX Cos. Inc. is selling Bob’s Stores to a pair of private equity firms, Philadelphia-based Versa Capital Management and Boston-based Crystal Capital. Financial terms were not revealed, but TJX reports that the sale will generate $23 million in cash proceeds, primarily from tax benefits.

TJX bought the then-bankrupt Bob’s Stores for about $57 million in December 2003. Although Bob’s sales improved during the past two years, the chain never turned a profit. Last year, Bob’s-which operates 34 stores in the Northeast-had an operating loss of $17.4 million on sales of about $310 million.

TJX plans to focus on its core off-price concepts that include T.J. Maxx, Marshalls, HomeGoods and A.J. Wright.

“While we continue to believe Bob’s Stores has great potential and an excellent organization, our decision to sell the business reflects our vision to grow TJX as a global, off-price company,” states Carol Meyrowitz, TJX president and CEO. “Bob’s Stores has made a great deal of progress in improving its comparable store sales, operating results and cash flow over the past two years. We are sincerely grateful for the hard work and commitment of the Bob’s Stores team, and we wish them much future success.” 

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Bob’s Stores Sold to Private Equity Groups

TJX Cos. Inc. announced the sale of Bob’s Stores to a pair of private equity firms, Philadelphia-based Versa Capital Management and Boston-based Crystal Capital.  Financial terms were not revealed, but TJX said the sale would generate $23 million in cash proceeds, primarily from tax benefits


TJX bought the bankrupt Bob’s Stores for about $57 million in December 2003. The chain’s sales improved during the past two years, but it never turned a profit.  Last year, Bob’s Stores, which has 34 stores in the northeast, had an operating loss of $17.4 million on sales of about $310 million.


“While we continue to believe Bob’s Stores has great potential and an excellent organization, our decision to sell the business reflects our vision to grow TJX as a global, off-price company,” TJX president and CEO Carol Meyrowitz said in a statement.  “Bob’s Stores has made a great deal of progress in improving its comparable store sales, operating results and cash flow over the past two years. . We are sincerely grateful for the hard work and commitment of the Bob’s Stores team, and we wish them much future success.”

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