Saturday, December 11, 2010

Don’t shop at TJ Maxx this Christmas

TJX the parent company of TJ Maxx, Marshalls, HomeGoods and AJ Wright has announced that they are closing all AJ Wright stores in 60 days. They will also be closing two warehouses one here in Fall River and the other in Indiana. The closings will put over 1,400 Massachusetts employees out of work, about 800 of them in the Fall River area alone.

Companies are in the business of making money. That's the goal and the priority. I get that, and if AJ Wright was losing money I could understand this decision. However AJ Wright is estimated to have made 10 million dollars in after tax profit for the year. So this decision isn't about making profit, it's about making MORE profit. I get that companies are not obligated to have a moral conscience but something seems terribly wrong with closing a profitable division and putting over 4,000 people out of work because you want to make MORE money.

In this economy companies should take pride in putting people back to work not laying them off so the rich can get richer.

In Fall River the AJ Wright Warehouse may be closing but the AJ Wright store will be renovated and converted to either a TJ Maxx, Marshalls or HomeGoods store but really let me give TJX some advice..just close the store. After all you're putting 800 people out of work, so they can't shop there. Fall River already has over 5,000 citizens looking for work so they're not going to be shopping there either. No, you'd be better off closing it now. Think of your investors!

But if you decide to go ahead and open your store anyway I won't be shopping there. You see as a corporation you have the right to decide what to do with your assets. You can open locations and close them however you see fit and for whatever reason you see fit. You can even close a profitable division simply to make MORE money. But I get to decide where I spend my money and I'm not giving it to a company that puts people out of work simply for greed.

I would urge anyone reading this to considering not giving your business to TJ Maxx, Marshalls, HomeGoods, or AJ Wright.  

12 comments:

Anonymous said...

That will teach them and they will go out of business and more jobs will be lost yes lets boycott.

shamrock said...

I can't agree with you on this one Lefty. TJX is probably one of the largest corporations that calls Massachusetts their home. Considering Fall River receives large amounts of funding from the state, what is good for the state is good for Fall River. If this TJX decision is something that helps cut their losses and generate greater profits, perhaps they will hire more employees at their Framingham headquarters.

While it is absolutely devestating that so many Fall Riverites are losing their jobs, if the AJ Wright brand wasn't profitable for TJX, it is not TJX's obligation to keep Fall River afloat.

If corporations aren't making responsible fiscal decisions that result in their shareholders making a profit, then the shareholders could possibly bring a derivative suit against the officers and directors of the corporation.

And on that note Lefty, I am headed to Marshalls to return the ascot and fedora I bought you for Festivus.

Lefty said...

Shamrock,

I would agree with you if TJX was losing money but that's not the case. AJ Wright is estimated to make 10 million in profit for this year. TJX simply sees an opportunity to grow the TJ Maxx and Marshalls brands.

And they have a right to grow their business. But I think it's irresponsible to but 4,400 out of work at a time when we a desperate to grow jobs not cut them. One half of those jobs are full time positions. 800 jobs are right here in Fall River.

Also I think TJX's handling of this is atrocious. How can they make this announcement just before Christmas? Just when people are worrying about how to put presents under the tree they now have to worry how to pay the rent.

So again, there were no losses to cut the division was profitable and TJX will NOT be hiring 1,400 people at their corporate offices.

I don't mind you returning my gift and really I prefer you take the money and drop it in a salvation army bucket. People are going to need the help more than I'd need an ascot.

shamrock said...

Even if AJ Wright is generating some income for TJX, and $10 million isn't really alot for an international corporation of their size, if TJX sees a way to generate greater revenue and expand their other lines (presumably creating jobs in a different area) can't they do that?

Yes, it absolutely sucks to find out you are losing your job right before Christmas, however, what is the good time of year to find out you are losing your job?

Anonymous said...

Hey Lefty Where Do You Get Your Fact?

The Sources That I have State The AJ Wright Has Not Made A Profit In Years.

Lefty said...

Um, primarily the articles that were in the Herald News, although I'm pretty sure the same information appeared in the Boston papers and perhaps the Projo.

I'm not sure what "sources" you are citing from but from the last few articles I read AJ Wright failed to make a profit until 2008. It has made small profits in 2008 and 2009. 2010 looks to be AJ Wright's best year ever with profits of over 12 million (which is about 10 million more than 2009's profits).

Anonymous said...

when is enough for a company enough? When do the companies again take pride in being companies that put Americans to work?
I guess just giving back to the CEO's and the shareholders is what counts. Why then don't we just let Hess build their LNG plant here on the waterfront. Their shareholders will make a bundle even though not too many people will get jobs out of it.

ProudUSARECWife said...

It does suck that they want MORE profits (when will enough ever be good enough) however, if people actually stop shopping at TJX, Home Goods and/or Marshalls, those stores will eventually have to close as well. Which in the end will leave even more people unemployed, which is not a good thing

Lefty said...

I don't believe my little boycott will hurt the profit margins all that much. And I doubt that enough people will follow my lead to cause any real issue for TJX.

If however TJX was faced with a large-scale boycott I'm sure they would take action to win back their customers.

JackieKay said...

As a former employee of the distribution center, I have to say I am relieved and at the same time very saddened about this whole thing- all for biased reasons, of course.

Speaking logically, I agree with your decision about boycotting TJX companies (for a different reason of course, I think they don't manage themselves well, sell decent products whatsoever, or treat their employees with any respect). I don't agree with your moral reasoning. Fall River is at a huge unemployment rate right now, over 5700 people are looking for jobs in the city. Most of my former older co-workers were little old Portuguese ladies who had formally work for Quaker Fabrics. They just keep getting moved and transferred. Now, there is no place for them to go. This alone, adds sympathy. My heart goes out to all my former low income co-workers.
The only reason? I love the city of Fall River, and I knew them personally.
I would not normally feel bad, because this is what capitalism is about. It's not about feelings, and it's not about morality. It makes you a respectable businessman, but not a successful business, alone. TJX was always losing profit with AJ Wright. It costs them millions to shut them down, but it will gain them more money in the long run. It was a poor little runt of a sibling store that never was, and should never be anyway. They will still reopen the Fall River store because they want commerce. They know that Fall River will probably still shop there because most people in the city can't afford to shop anywhere else.
AJ Wright has been through the ringer before. I'm surprised they lasted this long.

I do not feel bad whatsoever for the higher ups working in the distribution center. Not the supervisors, not the hiring staff, not anyone with a title. They all acted like they were superior, and they are the reason the city is a little bit screwed right now.
Fall River has a reason to be upset obviously, but the city has a reason to be angry, as well. The factory broke a huge tax contract it made with the city, and it did not alert officials or ANYONE of its closing in any sufficient amount of time. As it is, it broke the news two weeks before Christmastime. I hope that the city takes action against those from AJ Wright responsible for this. I believe TJX companies owe Fall River some compensation for its failure to produce a well thought out store, and if Fall River had enough money for pride, I wouldn't let any of their stores sell any merchandise at all through the city.
Unfortunately, this is not the case.

So, screw you, AJ Wright. That includes your distribution center. My heart goes out to Fall River, most particularly, my former co-workers.

JackieKay said...
This comment has been removed by the author.
Lefty said...

JackieKay,

Thanks for commenting. As I stated above I really didn't expect my boycott to have a crippling affect on TJX. My take is I don't like the way they handled this, I don't have to spend my money there.

There are companies that put employees before profits rare as that is. Obviously you can't do it to the extreme of hurting the company but it can be done.

Matouk right here in Fall River comes to mind.