BJ's Wholesale Club to Reserve for Certain House2Home Leases; Company Does Not Expect Reserve to Materially Affect Current or Future Business Operations.Business Editors NATICK, Mass.--(BUSINESS WIRE)--Nov. 7, 2001 BJ's Wholesale Club BJ's Wholesale Club, Inc. NYSE: BJ is a membership-only warehouse club chain operating in the East Coast of the United States, as well as in the state of Ohio. History , Inc. (BJ:NYSE NYSE See: New York Stock Exchange ) today announced that it will record a pre-tax charge of up to $110 million ($65 million after tax, or $.88 per diluted share), for its House2Home (HTH (chat) HTH - Hope This Helps. Often used sarcastically, see HAND. :NYSE) contingent lease liability and related expenses. House2Home filed for bankruptcy on November 7, 2001. The charge will be recorded in the financial statements for the third quarter ended November 3, 2002. Jack Nugent, BJ's president and chief executive officer, said, "Because of BJ's strong balance sheet, we believe that the establishment of a reserve for our liability related to 41 House2Home leases will not have a material adverse effect on our ongoing business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets ." BJ's contingent liability Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. for the House2Home leases dates back to 1989 when Waban Inc. was spun off from Zayre Corp. (now The TJX Companies, Inc., "TJX"). Both BJ's and HomeBase (now House2Home) were part of Waban Inc. until 1997. Under an agreement signed in 1997, BJ's and TJX agreed to share this ongoing responsibility for certain House2Home leases which TJX had previously guaranteed. BJ's agreed to indemnify TJX for 100% of any such liabilities through January 31, 2003 and 50% thereafter. BJ's Wholesale Club, Inc. introduced the wholesale club format to New England in 1984 and has since expanded to become a leading warehouse club in the eastern United States. BJ's currently operates 125 clubs in fifteen states. BJ's press releases are available on the Internet at www.bjs.com. Forward-Looking Statements Any statements in this press release about management's future expectations and the Company's plans and prospects, and any statements including the words "believes," "plans," "estimates," and "expects" are intended to indicate forward-looking statements within the meaning of The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of the ultimate manner in which House2Home leases are disposed of, as well as various other factors discussed in the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended February 3,2001, and its most recent quarterly reports filed with the SEC. |
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