Dive Brief:
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TJX Cos., which runs T.J. Maxx, Marshall’s, HomeGoods and other off-price banners in the U.S. and abroad, has divested its stake in Russian retailer Familia, the company said in a filing with the Securities and Exchange Commission.
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As of Wednesday, Doug Mizz, who is TJX senior executive vice president, resigned as a director on Familia’s board, and Scott Goldenberg, who is chief financial officer, resigned as board observer, according to the filing.
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The company in late 2019 paid $225 million for a 25% non-controlling minority stake in the privately held off-pricer.
Dive Insight:
In its filing, TJX said it could lose money by abandoning this investment, but is guided by a moral imperative in light of Russia’s unprovoked invasion of Ukraine.
As of Jan. 29, the carrying value of the company’s investment in Familia was $186 million, “which reflects the revaluing of the investment from Russian rubles to the U.S. dollar, resulting in a cumulative translation loss and reducing the carrying value of TJX’s investment by approximately $40 million,” the company said.
“Given the recent Russian invasion on Ukraine, The TJX Companies, Inc. (TJX) has committed to divesting its equity ownership in Familia in support of the people of Ukraine,” the company also said.
Familia is domiciled in Luxembourg and runs more than 400 stores in Russia, per the filing. Otherwise, TJX said it does not have any sales in Russia or Ukraine.
The move is among the most forceful actions taken by retailers and brands with interest in Russia.
