FRAMINGHAM, Mass. – TJX Companies Inc. announced plans Friday to consolidate the A.J. Wright division by converting the 91 stores into T.J. Maxx, Marshalls or HomeGoods stores.
The remaining 71 A.J. Wright stores, two distribution centers – including the one in Fall River – and the Framingham-based headquarters, as well as certain regional offices, will be closed, the company new release said. The other distribution center is located in South Bend, Ind.
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Locally, the East Providence A.J. Wright store will close as well as the New Bedford location.
TJX said 4,400 jobs will be eliminated, half of which are part-time positions; TJX said it will “make efforts” to place the staff at nearby TJMaxx, Marshalls or HomeGoods stores and one quarter are seen being offered positions elsewhere within the company.
Employees will have the opportunity to be compensated through the holiday season and most will remain employed through late January, the company said.
The 3,400 employees at the 91 A.J. Wright stores that will be converted into T.J. Maxx, Marshalls or HomeGoods stores will remain on the payroll, including the eight-week interim period when the stores will be closed for conversion.
Other Massachusetts locations slated to permanently close are in: Fitchburg, Malden, Medford, Methuen, Quincy, Somerville, Springfield, Waltham, and Worcester.
“Any business decision that involves the elimination of jobs, even if right for the company as a whole, is extremely difficult,” said Carol Meyrowitz, president and CEO.
“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,” she added.
In the same news release, the company raised estimates on its MarMaxx division by 300-400 stores.
TJX Companies estimated a pretax closing cost ranging from $250 million to $280 million, reducing net income by $150 million to $170 million or by 38 cents to 43 cents per share. The after-tax cost is expected to be “significantly less,” ranging from $40 million to $50 million.
Since the stores will not all be closed by year-end, a portion of the costs will be recorded in fourth quarter 2011 and the remainder in the first quarter of fiscal 2012, the news release said.
