The retail appetite of private-equity firm Leonard Green & Partners apparently hasn't waned. It is now looking to pick up BJ's Wholesale Club, according to a New York Post article.
The move to purchase BJ's follows the $3 billion acquisition of clothier J. Crew and the proposed buyout of Jo-Ann Stores for $1.6 billion. An acquisition of BJ's would give Leonard Green 190 warehouse clubs, mainly in the Northeast.
According to the Post, Leonard Green already owns a 9.5% stake in BJ's, which hired Morgan Stanley recently and is exploring strategic alternatives. One of those options is apparently the sale leaseback of its real estate portfolio, valued at around $1 billion.
Bj's seems to be doing well in this economy. The company posted a third-quarter net income of $23 million, up from $17.4 million during the same year-ago period. Same-store sales rose 2.5% and were up 4.8% so far this year.
How would a takeover by Leonard Green help BJ's, if at all? Are neighboring retail landlords happy with the traffic that the company receives, or would the acquisition by a private-equity firm give the concept a needed shot in the arm?
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