Goodwill Closing
- Thread starter SkyRider
- Start date
http://www.cbc.ca/news/canada/toronto/goodwill-gta-lockout-1.3407732
Goodwill Industries is temporarily closing 16 stores, 10 donation centres and 2 offices in southern Ontario due to a "cash flow crisis," according to a statement from CEO Keiko Nakamura.
The closures affect 450 employees, many of whom showed up to work early Sunday morning to find that they were locked out without any explanation from management.
Locations in Toronto, Mississauga, Brampton, Newmarket, Barrie, Orillia and Brockville are closed until management can meet with representatives of the Canadian Airport Workers Union, which represents the employees.
Goodwill Industries is temporarily closing 16 stores, 10 donation centres and 2 offices in southern Ontario due to a "cash flow crisis," according to a statement from CEO Keiko Nakamura.
The closures affect 450 employees, many of whom showed up to work early Sunday morning to find that they were locked out without any explanation from management.
Locations in Toronto, Mississauga, Brampton, Newmarket, Barrie, Orillia and Brockville are closed until management can meet with representatives of the Canadian Airport Workers Union, which represents the employees.
Nice way of telling employees that they don't have a job anymore . Goodwill ... they should change their name .
I don't know much about Goodwill but I always assumed it was for a good cause. Maybe something shady is going on? Seems weird that a cash flow problem would hit so suddenly.
Some interesting reading about Goodwill. https://en.wikipedia.org/wiki/Goodwill_Industries. I was always under the impression that Goodwill is a quasi private company and technically not a charity. I believe Sally Ann is a charitable organization?
It's only 2016, four years short on their initiative.
"On the occasion of its 100th anniversary in 2002, Goodwill Industries launched an international workforce development initiative designed to integrate 20 million people into the workplace by the year 2020"
well, it has non profit status, but it is an Evangelical Christian church, so although it does a lot of good with your donations, it does have ulterior motives.
They do pay their CEOs well.
http://www.thestar.com/news/gta/2016/01/17/16-ontario-goodwill-stores-shut-down.html
"A short statement from CEO Keiko Nakamura blamed the closing of the 80-year-old charitable organization “on a number of factors affecting the retail environment. Goodwill is facing a cash flow crisis.” Nakamura is the former head of Toronto Community Housing who was fired from the city agency in 2011 in the fallout from a spending scandal."
The CEO should have stuck to government agencies where there are fewer limits on cash flow.
http://www.thestar.com/news/gta/2016/01/17/16-ontario-goodwill-stores-shut-down.html
"A short statement from CEO Keiko Nakamura blamed the closing of the 80-year-old charitable organization “on a number of factors affecting the retail environment. Goodwill is facing a cash flow crisis.” Nakamura is the former head of Toronto Community Housing who was fired from the city agency in 2011 in the fallout from a spending scandal."
The CEO should have stuck to government agencies where there are fewer limits on cash flow.
same old HR bullshit anywhere, its not their 'fault' per se. Fuji seems to be an HR specialist, so he probably knows why its done this way.
I don't get how something like this happens.
According to the article, their expenses exceed their revenues by 5 percent. WTF, that's an easy fix to me. Also according to the article, there is someone on staff making 250 k per year. I'm going to guess that that someone is Keiko Nakamura. 250k a year to run a not for profit is excessive in my humble opinion.
One thing is for sure, Keiko got her ass fired from the City of Toronto (hard to do) and now drove an 80 year old company into the ground. I think her resume is going to look like shit and she may have to adjust her outlook a bit as to her remuneration with her next job. (Do you want fries with that)
According to the article, their expenses exceed their revenues by 5 percent. WTF, that's an easy fix to me. Also according to the article, there is someone on staff making 250 k per year. I'm going to guess that that someone is Keiko Nakamura. 250k a year to run a not for profit is excessive in my humble opinion.
One thing is for sure, Keiko got her ass fired from the City of Toronto (hard to do) and now drove an 80 year old company into the ground. I think her resume is going to look like shit and she may have to adjust her outlook a bit as to her remuneration with her next job. (Do you want fries with that)
She most certainly negotiated a nice severance package should she be fired or if Goodwill goes powder. Serving fries would be poetic justice, but unlikely to happen.
Also surprising to me is that the employees are unionized. A CEO making $250,000 and a unionized workforce is a recipe for disaster. (Let's hope nobody at the local food bank is making $250,000 a year.) One less competitor for Value Village.
No idea if she's worth it or not (I'm thinking not) but her salary isn't out of whack for someone running an organization of this size.
Toronto sun article, http://www.torontosun.com/2016/01/17/goodwill-closes-16-ontario-stores
"Currently, this is a fluid situation and Goodwill is exploring a variety of options to continue its decades-long mission," she said. "Goodwill will be reaching out to the union, stakeholders and all levels of governments to bring clarity as soon as possible."
Maybe GoodWill is looking for concessions from the union and/or more government money.
Drove by the GoodWill store on Dundas in Mississauga tonight, is closed. Could see people rummaging through the dropped off donations as car headlights fanned across and lit the drop off area.
"Currently, this is a fluid situation and Goodwill is exploring a variety of options to continue its decades-long mission," she said. "Goodwill will be reaching out to the union, stakeholders and all levels of governments to bring clarity as soon as possible."
Maybe GoodWill is looking for concessions from the union and/or more government money.
Drove by the GoodWill store on Dundas in Mississauga tonight, is closed. Could see people rummaging through the dropped off donations as car headlights fanned across and lit the drop off area.
Well well well.
Elect Wynne, and elect Trudeau and his sunny ways, a company like Goodwill goes under. Like, what gives?
Goodwill only has two expenses, rent and to pay salary. They don't pay for their inventory because that's donated.
Gee, how do you run a company like that into the ground, and after 80 years! Lets see, 2016 subtract 80 is 1936 - like my gawd, that was still the Great Depression.
Who owns Goodwill? Are they listed on the TSE?
Elect Wynne, and elect Trudeau and his sunny ways, a company like Goodwill goes under. Like, what gives?
Goodwill only has two expenses, rent and to pay salary. They don't pay for their inventory because that's donated.
Gee, how do you run a company like that into the ground, and after 80 years! Lets see, 2016 subtract 80 is 1936 - like my gawd, that was still the Great Depression.
Who owns Goodwill? Are they listed on the TSE?
Maybe Goodwill just got beat in the market place.
Places like Value Village, church basements, One $1 Dollar Store, did they kicked Goodwill asses among the low income shopper / cheapo shopper?
This is a very interesting business story.
Goodwill should immediately arrange for a spot on that CBC show, Dragons Den to get new funding before that show gets cancel and or before the CBC finally bites the dust too.
Just the times we live in. The Neo-Liberals are winning, and not the poor classes, no matter what the politicians say or who's in power!
Places like Value Village, church basements, One $1 Dollar Store, did they kicked Goodwill asses among the low income shopper / cheapo shopper?
This is a very interesting business story.
Goodwill should immediately arrange for a spot on that CBC show, Dragons Den to get new funding before that show gets cancel and or before the CBC finally bites the dust too.
Just the times we live in. The Neo-Liberals are winning, and not the poor classes, no matter what the politicians say or who's in power!
I wouldn't be surprised if fraud is involved. There was a story 2-3 years ago about another charity where 2 insiders were taking donated toys and selling them to your local mom and pop dollar stores.
http://sumac.com/why-fraudsters-target-charities-and-npos/
Goodwill is an American company so they wouldn't be listed on the TSX. I do believe non-profits can issues shares, but any revenue they generate has to be re-invested back into the business i.e cannot flow out of the organization.
Similar threads
