TJX to Consolidate A.J. Wright Division, Cut 4,400 Jobs Announcing job cuts right before the holidays is a Scrooge-like move, but the TJX Companies (TJX) just did it anyway. The discount clothing retailer said Friday it would consolidate its A.J. Wright division, converting its stores to those of its other brands or closing them, and cutting 4,400 jobs. The move will allow the company to focus on its larger, more profitable businesses that have major growth potential, it said.

Framingham, Mass.-based TJX said it will convert 91 A.J. Wright stores into T.J. Maxx, Marshalls or HomeGoods stores and close the remaining 71 stores, as well as A.J. Wright's two distribution centers and its home office.

"A critical factor in this decision is that, over the past two years, we have learned how to serve the A.J. Wright customer with our T.J. Maxx and Marshalls banners and have seen very strong performance from these stores in demographic markets similar to those in which we have A.J. Wright stores," said President and CEO Carol Meyrowitz.

While some 3,400 people will remain employed in the converted stores, in total, the company estimates that approximately 4,400 jobs will be eliminated across the U.S., about half of them part-time positions.

"While I believe this move makes us a much stronger company and will benefit TJX in both the near-term and long-term, it was not an easy decision, as many positions will be eliminated and it will be difficult for our affected Associates," Meyrowitz said.

TJX said the effected workers "will have the opportunity to be compensated at least through the holiday season, and most will remain employed through late January." TJX also said it "will be providing enhanced severance and other assistance following this period to help with the transition."

All 162 A.J. Wright stores will close between late January and the middle of February 2011. The 91 stores being converted will remain closed for eight weeks, after which they will reopen under their new banners.

TJX expects to incur estimated pre-tax costs related to the shutdown of the A.J. Wright brand in the range of $250 to $280 million, which would reduce net income by $150 to $170 million, or by 38 cents to 43 cents per share. The impact will continue to be negative throughout 2011, but TJX expects to start seeing positive results from the move in 2012.


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rosefiowers

Just to add a little piece of info to this story, A J Wright didn't tell any of their employees about this at all! I have a close family member who works at one of the stores that will be closing and he didn't know anything about this until I saw it on the news and called him! What a horrible way to treat your employees! Shame on you A J Wright!

December 11 2010 at 1:03 PM Report abuse +1 rate up rate down Reply
lpi2007

Another sign we are out of the recession, that's what the media keeps saying

December 11 2010 at 8:11 AM Report abuse +4 rate up rate down Reply
rjen164497

Several years ago when "Marshalls" was a baby, Marshalls was the beginning of all this, they opened a store in a low income city in Massachusetts. It sold the lowest end of the seconds and irregular goods that suburban Marshalls customers didn't want. The problem was those customers didn't know Brand names. They only knew cheap price. Also for every item you sold, they stole 5. It appears the new generation at TJX needed to learn it's own lesson on catering to the low income customers. You can't run a for profit business where people believe in Entitlements.

December 11 2010 at 8:05 AM Report abuse +4 rate up rate down Reply
Gary

Barack is the greatest president ever!...no, really! Just because he is completely unqualified, doesn't mean...um...ah...errr...um...what was I saying? Oh yeah, it's Bush's fault! And Sarah Palin is dumb! Oh, and we need higher taxes! And Yer a racist!!! Rich people are evil! Keep your hands off my unemployment check! Republicans want to kill babies! Save the rain forest! Global warming is real!!! I'm smarter than you, I subscribe to AOL news! P.S. I heart Obama!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

December 11 2010 at 12:41 AM Report abuse rate up rate down Reply
xanadutu

GEEZZ ~ Over 50% of all employees at TJM are part time, inexperienced and paid minimun wages with absolutely NO benefits!! All they are is another Wal-Mart!!

December 10 2010 at 11:15 PM Report abuse +4 rate up rate down Reply
2 replies to xanadutu's comment
southrange

That's retail. What's your point? Believe it or not there are people who only want to work part time...such as students.

December 11 2010 at 7:59 AM Report abuse -3 rate up rate down Reply
rjen164497

Just keep collecting your Entitlements or go back to your country.

December 11 2010 at 8:06 AM Report abuse +2 rate up rate down Reply
carl

Think before you vote next time

December 10 2010 at 10:05 PM Report abuse +3 rate up rate down Reply
savemycountry911

I love TJMax. They sell quality made in China junk so much cheaper.

December 10 2010 at 8:39 PM Report abuse +6 rate up rate down Reply
dragnet63

First of all people, read the article correctly, they are only closing all AJ WRIGHT stores. They are dumps anyway!Some of the locations will be converted over to TJMAXX or MARSHALLS!!! To the idiot that claims MARSHALLS sells used and refurbished merchandise,you must have been fired and are angry! You know damn well that is a lie!!!!!!!!!!! How do I know this,I have worked there for the last 25 years!Also,our stores would not be messy if the public would be neater and more respectful when shopping. We do work with very limited payroll.Lastly,yes the TJX companies do treat their employees poorly,I do agree with that.

December 10 2010 at 8:09 PM Report abuse +6 rate up rate down Reply
1 reply to dragnet63's comment
sheriff508

Why have you stayed there for TWENTY FIVE years if they treat the people " poorly"?? Perhaps you have NO skills????

December 10 2010 at 8:37 PM Report abuse +1 rate up rate down Reply
fixitright73

make a sound, boycott

December 10 2010 at 7:54 PM Report abuse rate up rate down Reply
1 reply to fixitright73's comment
rjen164497

Sure and put more out of work. Idiots, this is what hurts employees more than Employers.

December 11 2010 at 8:22 AM Report abuse +1 rate up rate down Reply
Greg

Then screw TJX--I will never buy anything ever again from any of their brands, I hope they all go out of business.

December 10 2010 at 7:48 PM Report abuse rate up rate down Reply