The TJX Companies, Inc. announced that it signed an agreement to purchase substantially all of the assets of Bob's Stores. Bob's Stores and its subsidiaries have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code.
TJX expects the transaction to close no later than the end of December 2003.
Under the agreement, TJX would purchase the assets of Bob's Stores for $100 million, less various adjustments, and assume store leases and operating contracts to be designated by TJX. TJX expects to assume most, but not all, of Bob's Stores' leases. The purchase price will be reduced for various adjustments, including reductions in inventory and the customer, employee and post-bankruptcy petition trade payables assumed by TJX. The transaction is subject to a number of conditions, including bankruptcy court and regulatory approval.
Edmond J. English, President and Chief Executive Officer of The TJX Companies, Inc., stated, “The anticipated addition of Bob's Stores to our family of businesses represents our continued focus on growing our Company successfully well into the future. While we expect that our earnings per share will be only minimally impacted over the next few years, we believe Bob's Stores provides us with a significant long-term growth vehicle for a relatively small initial investment. As a value-oriented chain, Bob's Stores shares many characteristics with TJX's other divisions, such as a large store format, branded apparel and footwear at great prices and an extremely loyal customer base. As a result, it fits well with TJX's mission and gives us new opportunities to add to our traditional customer base and broaden our offerings in casual clothing, activewear, workwear, and footwear. In addition, the experienced Bob's Stores' management team, strong buying organization and brand-name vendor relationships will complement our own.
“TJX has a solid track record of starting businesses and growing them successfully. We view Bob's Stores as a start-up and expect that the investment to acquire and develop Bob's Stores will be similar to those that we have made previously to start and develop our HomeGoods, T.K. Maxx and A.J. Wright businesses. We believe that, with our financial strength, experience in growing businesses, combined management expertise, and synergies, we will bring Bob's Stores into profitability within the next couple of years and provide TJX with an additional long-term growth vehicle.”
