The TJX Companies, Inc. reported it has sold Bobs Stores to private equity firms Versa Capital Management and Crystal Capital. Terms of the sale were not disclosed.
Carol Meyrowitz, president and CEO of The TJX Companies, stated, “While we continue to believe Bobs 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. We believe that focusing on the significant opportunities to expand the domestic and international presence of our core, off-price concepts is the right strategy for us at this time. Bobs 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 Bobs Stores team, and we wish them much future success.”
Financial Impact of Sale/Reclassification of Bobs Stores to Discontinued Operations
The company will record an after-tax loss in its Fiscal 2009 third quarter of approximately $15 million, or 3 cents per share, from the sale of Bobs Stores, which will be reported as a loss from discontinued operations. In the third quarter and going forward, historical results will also be adjusted to reflect the Bobs Stores business segment as discontinued operations.
As a result of this sale and reclassification of Bobs Stores to discontinued operations, the company is updating its guidance to reflect income from continuing operations, which will exclude the impact of the sale of Bobs Stores and its operating results. The companys guidance for the third and fourth quarter for diluted earnings per share from continuing operations is unchanged from the guidance for diluted earnings per share previously issued in the companys 8/12/08 press release.