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TJX to sell shares of Russian firm Familia

By Rachel Douglass

Mar 4, 2022

Business

Image: TK Maxx Enschede, Menno Ridderhof

The TJX Companies, owner of TJ Maxx, has announced it will be selling its equity ownership in Familia, an off-price Russian retailer, in support of the people of Ukraine.

In a release, the company said Doug Mizzi and Scott Golderberg have resigned from their director and observer positions on the retailer’s board of directors, effective immediately.

While the decision to divest may fall in line with the company’s values, it said it recognised a potential investment loss when its place in Familia is sold.

The company said it expects to take an impairment charge due to the sale.

While TJX does not have any sales in Russia or Ukraine, in 2019, the budget retail group invested 225 million dollars for a 25 percent non-controlling stake in Familia, which currently operates 400 stores in Russia.

As of January 29, 2022, TJX said the current value of its investment in Familia sat at 186 million dollars.

In a public letter, TJX CEO Ernie Herrman expressed the company’s condemnation of the Russian invasion, stating it stood with the people of Ukraine.

Alongside its donations to various humanitarian organisations aiding Ukrainians, Herrman also said the company has instructed its buyers to stop buying merchandise from Russia and Belarus, which has ties to the invasion.

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