More than 42 percent of East Coast grocery chain BJ’s Wholesale Club may be headed to market. The company filed forms with the U.S. Securities and Exchange Commission (SEC) this week to prepare more than 58 million shares of common stock for sale.
“This prospectus relates to the offer and sale from time to time by the selling stockholders identified in this prospectus of up to an aggregate of 58,345,145 shares of our common stock…” BJ’s noted in an SEC filing. The retailer also noted: “We will not receive any proceeds from the sale of our shares by the selling stockholders. The selling stockholders will receive all of the net proceeds and bear all commissions and discounts, if any, from the sale of our shares pursuant to this prospectus.”
The 58,345,145 shares to be registered for sale—roughly 42 percent of the company’s approximately 136,838,000 outstanding shares—are jointly owned by two of BJ’s largest investors: Leonard Green & Partners and CVC Capital Partners.
BJ’s first sold to the two private equity firms in 2011.
How will the situation play itself out? Will a suitor emerge to take up the stock wholesale, so to speak? Deli Market News will continue to report.