After BJ's Wholesale Club, Inc. announced its board has decided to explore and evaluate strategic alternatives, including a possible sale an investigation on behalf of investors of BJ's Wholesale Club, Inc. (NYSE:BJ) over possible breaches of fiduciary duty was announced.

The investigation by a law firm concerns whether certain directors and officers at BJ's Wholesale Club, Inc. (NYSE:BJ) or others breached or will breach their fiduciary duties in connection with a potential takeover and in the event of a buyout.
Shares of BJ's Wholesale Club, Inc. (Public, NYSE:BJ) rose from roughly $43 per share on Wednesday, February 2, 2011, to $49.03 per share on Thursday after BJ's Wholesale Club, Inc. (NYSE: BJ) announced that its Board of Directors, upon the recommendation of a committee of independent directors, has decided to explore and evaluate strategic alternatives, including a possible sale of the Company.
BJ shares increased already in November 2010 from $42 per share to $47 per share after the New York Post reported that BJ's Wholesale Club was close to hiring an adviser to explore strategic alternatives, including a possible sale to a private equity firm. Then NYSE BJ shares decreased over the course of December to $44.47 per share before increasing to $48.55 per share on Dec. 30. During January NYSE BJ shares decreased to $43 on Feb 02.
But NYSE BJ shares traded also as recently as July 2010 at $47.01 per share. In addition BJ's Wholesale Club has performed well for its shareholders in the past. BJ's Wholesale Club reported an increase in Total Revenue over its past 53/52weeks filing periods. BJ's Wholesale Clubs 12 months Total Revenue increased from $8.496billion - reported on Feb 03, 2007 - to $10.186billion - reported on Jan 30, 2010. Its Net Income went during the same time frame from $72.02million to $132.14million.

The investigation concerns whether BJ's Wholesale Club Board of Directors will undertake an adequate and fair sales process to obtain fair consideration for all shareholders of BJ's Wholesale Club, Inc. (NYSE:BJ) and will breach their fiduciary duties to BJ's Wholesale Club (NYSE:BJ) shareholder by failing to adequately shop the Company before entering into any transaction. A potential class action lawsuit would seek to maximize the amount of money and information NYSE BJ shareholders would receive in a buyout, so the law firm.