* Company to cut some 4,400 US jobs, about half part-time
* Company will take $150 mln-$170 mln charge on closures
* TJX shares unchanged
(Adds analyst comment, details, share activity)
NEW YORK, Dec 10 TJX Companies Inc (TJX.N) will
shut down its A.J. Wright clothing stores, cutting about 4,400
jobs and taking a charge of $150 million to $170 million, as it
focuses on its core off-price retail brands like T.J. Maxx and
The job cuts announced on Friday are equal to roughly 3
percent of TJX's global workforce.
"We like that the company is getting rid of a concept which
we thought would not be successful and has frustrated the
Street for years in terms of lack of profitability and
allocation of unproductive capital," Jefferies and Co analyst
Randal Konik said in a research note.
In the first three quarters of fiscal year 2011, A.J.
Wright, which was launched in 1998, accounted for $609 million
in sales, or about 4 percent, of the company's total sales, and
less than 1 percent of the profit from TJX's segments.
TJX will close 71 A.J. Wright stores and convert the
remaining 91 locations into T.J. Maxx, Marshalls or HomeGoods
stores, the company said.
The closures and conversions will take place in late
January through the middle of February.
The company said $40 million to $50 million of the costs
associated with closing the A.J. Wright stores will be in cash,
with the rest coming from items like writing down the value of
The total charge is equal to about 38 cents to 43 cents a
share, the company said.
Additionally, the company also said it expected costs of
about $12 million to $15 million to convert the 91 A.J. Wright
stores into other brands.
TJX shares were unchanged at $44.96 in noon trading Friday
on the New York Stock Exchange.
(Reporting by Jon Lentz; additional reporting by Brad Dorfman;
Editing by Dave Zimmerman and Tim Dobbyn)