Jo-Ann Stores to be bought by Leonard Green for $1.6 billion
Hudson, Ohio — Jo-Ann Stores said Thursday it has agreed to be acquired by an affiliate of private-equity firm Leonard Green & Partners for $1.6 billion in cash.
Los Angeles-based Leonard Green’s acquisition of the U.S.’s largest fabric retailer follows its $3 billion purchase of J. Crew, announced in late November.
Going private will enable Jo-Ann Stores to renovate stores and accelerate the chain’s expansion. It currently operates 756 stores.
“We are excited about the prospect of working with Leonard Green & Partners as we further capitalize on opportunities to accelerate the expansion and upgrade of our stores and pursue market share gains,” said Darrell Webb, chairman and CEO of Jo-Ann Stores.
Pending final approval and customary closing conditions, the transaction is slated to close in the first half of calendar 2011.
Other significant Leonard Green retail investments include Whole Foods Market; Petco; Sports Authority; The Container Store; Tourneau; David’s Bridal and Neiman Marcus Group.
Bed Bath & Beyond Q3 profit climbs 28%, beats Street
Union, N.J. — Bed Bath & Beyond said Wednesday that profit for the quarter ended Nov. 27 rose 28% to $188.6 million, compared with $151.3 million in the year-ago period.
Results topped analyst expectations.
Revenue rose 11% to $2.2 billion, edging Wall Street expectations of $2.11 billion in revenue. Same-store sales increased 7%.
The company had 1,127 stores at the end of the quarter. Bed Bath & Beyond opened five of its namesake stores, five Christmas Tree Shops stores and seven buybuy Baby stores during the quarter.
Christopher & Banks swings to loss in Q3
Minneapolis — Christopher & Banks Corp. reported Wednesday a net loss of $9.2 million for the third quarter, compared with a profit of $7 million in the year-ago period.
Sales dropped to $120.9 million from $132 million in the prior year. Same-store sales decreased 7%.
“We are clearly disappointed with our performance for the third quarter,” said Larry Barenbaum, interim president and CEO. He added that the company expects fourth-quarter improvements, resulting in same-store sales that are flat to up low single digits as compared with the fourth quarter of last year.