Zayre to Spin Off Warehouse Unit
- Share via
NEW YORK — Zayre Corp., in a move to boost profits after the sale of its money-losing Zayre Stores unit in October, said Monday that it will spin off its Warehouse Clubs division and then buy the 17% of TJX Cos. it does not already own.
Zayre said it would change its name after the merger to TJX Cos. effective at the Zayre annual meeting in June. Zayre had spun off a minority interest in TJX, a profitable off-price retailer, in 1987.
One analyst said the deal would value TJX at $32 a share or about $1.7 billion, based on 53 million shares outstanding.
TJX operates the off-price retailers T. J. Maxx and Hit or Miss and the Chadwick’s of Boston mail order business. Its Wholesale Clubs division is made up of BJ’s Wholesale Club and HomeClub, which offers do-it-yourself home improvement items.
Zayre shares slipped 75 cents to $25.625 on the New York Stock Exchange. TJX fell 1 to $23.50.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
