J. Crew Plans IPO
New York City, J. Crew Group today announced that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to the proposed initial public offering of its common stock. The shares will be offered by a group of underwriters led by Goldman, Sachs & Co. and Bear, Stearns & Co. Inc.
The company expects to use the net proceeds of the offering, along with the proceeds of a sale of $73.5 million of its common stock to Texas Pacific Group, its majority shareholder, and borrowings under a new term loan that the company expects to enter into, to redeem its outstanding cumulative preferred stock and some of its outstanding debt and to pay related costs.
High Gas Prices Hurt BJ’s and Wal-Mart
Natick, Mass. and Bentonville, Ark., The rising price of gasoline is not only affecting consumers. Retailers are also feeling the effects of the increases. BJ’s Wholesale Club reduced its earnings forecast for the year by about 3? per share because of lack of gas profits. The company said although prices and sales of gas rose, the profits in that segment of sales decreased.
Wal-Mart has also felt the increase in gas prices. The company said its sales growth was slowed for the second quarter to the lowest profit increase it has seen in four years because of rising fuel prices. Thomas M. Schoewe, Wal-Mart’s executive VP and CFO, said he believes high gas prices will “continue to impact a large portion of our customer base and put pressure on operating results.”
Kroger Ready to Broadcast
Cincinnati, The Kroger Co entered into a multi-year agreement with InStore Broadcasting Network to provide a television network for customers in more than 2,500 Kroger-owned stores across the country. The satellite-delivered network uses plasma and LCD screens located in key locations throughout the store to deliver information about new products, services, cooking tips and special promotions. Kroger community service and relevant entertainment segments are also highlighted.