TJX Ditching A.J. Wright Brand
Discount retailer TJX Cos. Inc. of Framingham is eliminating its AJ Wright stores, closing 71 locations and converting 91 others into its T.J. Maxx, Marshalls or HomeGoods brands.
The company said the action will eliminate about 4,400 full- and part-time positions across the United States. It said most of those employees will remain employed through late January, and all will receive severance pay and other support.
Stores slated for closure, rather than conversion, include one in Fitchburg and another at the Perkins Farms Plaza in Worcester.
TJX will also close the AJ Wright headquarters in Framingham, as well as distribution centers in Fall River and in South Bend, Ind. The company said it will try to help laid-off workers find new positions with its other brands.
TJX said one factor in the decision to eliminate AJ Wright is that it is increasingly serving the same demographic of customers with its T.J. Maxx and Marshalls stores. According to the TJX website, A.J. Wright, which launched in 1998, differentiates itself from other TJX brands by primarily targeting moderate-income customers.
The company said getting rid of A.J. Wright will improve its overall profitability and increase the growth potential of T.J. Maxx and Marshalls. It predicts the cost of closing the business will be between $250 million and $280 million, reducing net income by $150 million to $170 million. It said the costs will probably be recorded in the fourth quarter of fiscal year 2011 and the first quarter of fiscal year 2012.
TJX said it will close the AJ Wright stores between late January and mid-February.
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