12-10-2010 Statement from Mayor Luecke on A.J. Wright closing

Home Browse Search

development staff have been meeting with two companies, which each have been looking for a facility of about this size in South Bend. We hope to engage these companies in conversation about whether this facility would be appropriate for their needs. There are provisions in place that will allow the City to collect other penalties to recoup some of the public investment that was made in this project. These penalties are based on the failure to meet targeted jobs, which were to rise to 857 jobs in Phase 2. The contracted period extends through 2019. Those penalty amounts are not available at this time and will need to be calculated based upon what actually happens. I can report that since 2005, TJX has paid tax penalties for not meeting job targets here in South Bend. In its most recent report from March 1, 2010, TJX paid a $27,600 penalty because its 531 jobs on Nov. 30, 2009, were 126 jobs below the 657-job target. Including the most recent payment, TJX has paid $410,780 in job-target penalties since 2005. This consolidation nationally involves cutting 4,400 positions, includes the conversion of 91 A.J. Wright stores to other TJX brands – such as T.J. Maxx, Marshall’s or HomeGoods stores – and the closing of 71 other stores. Almost half of the positions expected to be cut are part-time. TJX has about 154,000 employees companywide. There is not much a community can do when a company decides for business reasons to close an entire division or brand, as TJX is doing with its A.J. Wright division. South Bend’s location provides a key advantage when compared with other communities as a site for distribution centers. Our economic development staff will highlight that strength as they market this excellent facility and location to other potential users. # # #