TJX to Close A.J. Wright Chain, Cut 4,400 Jobs

Discussion in 'Wall St. News' started by S2007S, Dec 10, 2010.

  1. S2007S


    Its only 3% of the global workforce but its still over 4000 people losing jobs which isn't good.

    TJX to Close A.J. Wright Chain, Cut 4,400 Jobs

    December 10, 2010

    NEW YORK (Reuters) - TJX Companies Inc will shut down its A.J. Wright clothing stores, cutting about 4,400 jobs and taking a charge of $150 million to $170 million, as it focuses on its core off-price retail brands like T.J. Maxx and Marshalls.

    The job cuts announced on Friday are equal to roughly 3 percent of TJX's global workforce.

    "We like that the company is getting rid of a concept which we thought would not be successful and has frustrated the Street for years in terms of lack of profitability and allocation of unproductive capital," Jefferies and Co analyst Randal Konik said in a research note.

    In the first three quarters of fiscal year 2011, A.J. Wright, which was launched in 1998, accounted for $609 million in sales, or about 4 percent, of the company's total sales, and less than 1 percent of the profit from TJX's segments.

    TJX will close 71 A.J. Wright stores and convert the remaining 91 locations into T.J. Maxx, Marshalls or HomeGoods stores, the company said.

    The closures and conversions will take place in late January through the middle of February.

    The company said $40 million to $50 million of the costs associated with closing the A.J. Wright stores will be in cash, with the rest coming from items like writing down the value of assets.

    The total charge is equal to about 38 cents to 43 cents a share, the company said.

    Additionally, the company also said it expected costs of about $12 million to $15 million to convert the 91 A.J. Wright stores into other brands.

    TJX shares were unchanged at $44.96 in noon trading Friday on the New York Stock Exchange.
  2. The world has more than "enough" clothing stores. When was the last time you heard somebody brag about buying something from there? :confused: :(
  3. S2007S


    I totally agree, go into any mall, 90% is made up of clothing retail stores. How many more clothing stores do we need!!
  4. The malls aren't as "infested" with jewelry stores as they were last year and the year before too. The Cash-4-Gold guys have taken their places. :D
  5. S2007S


    What happens when you see "THE CASH-4-GOLD guys taking their places???


    Just like in the early 80's when every street corner around the US had gold stores popping up left and right. This usually signals a top is near.

    I'm bullish on gold but after seeing commercials and noticing places around my area starting to open up and scream that they buy gold its time to move in the opposite direction.
  6. Dammit.
    Where will I get a new Members Only jacket?
  7. 1) Salvation Army Thrift Store.
    2) E-Bay
    3) Craigslist
    4) KnockOffs-R-Us Outlet Store :cool: