In an SEC filing, The TJX Companies said given the recent Russian invasion on Ukraine, it has committed to divesting its equity ownership in Familia in support of the people of Ukraine.
As of 2 March, Doug Mizzi and Scott Goldenberg have resigned from their director and observer positions, respectively, on Familia’s board of directors, effective immediately.
TJX invested US$225m for a 25% non-controlling, minority interest in privately held Familia in November of 2019. Familia, domiciled in Luxembourg, is an off-price retailer of apparel and home fashions with more than 400 stores in Russia.
“As a result of this commitment to divest, TJX may recognise an investment loss when its Familia position is sold. Prior to a sale, TJX may be required to record an impairment charge if the fair value of its Familia investment declines below its carrying value on the balance sheet,” the company said in its filing.
TJX added it does not have any sales in Russia or Ukraine.
In a statement shared with Just Style, the company said: “At TJX, we unite with others around the world in our condemnation of the Russian invasion of Ukraine and deplore the senseless military aggression. We are deeply concerned about our many associates and their families and loved ones who have been impacted, and we are offering them our support. We have also made donations to numerous relief organisations providing humanitarian aid to help people impacted by the war.
“Consistent with our corporate values, we are committed to divesting our minority investment in Familia, a Russian off-price retailer. Additionally, we have instructed our buyers globally to stop buying merchandise from Russia and Belarus. Our management team believes these are important business actions to cut ties with Russia as part of our commitment to stand with the people of Ukraine at this critical time.”
Click here for more on how fashion companies are mobilising worldwide to support Ukraine following Russia’s invasion of the country on 24 February.