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rfmcdonaldI first saw the news that Goodwill's 26 stores across most of Ontario were shutting down on blogTO. Employees were greeted on Sunday by locked doors and uninformative signs. Alas, it has since been confirmed, among other places on the social sector chain's official website, that Goodwill's days are numbered.
The Globe and Mail's Serena Ross outlined the scale of this.
Apparently these employees will not get paid this week. It's worth noting that this failure occurred under Ms. Nakamura, a person who was fired in 2011 from her position as the head of Toronto Community Housing, on account of excessive expenditures.
I've visited different Goodwill locations in the city on occasions since I've moved to Toronto. I hope something can be salvaged of the chain, through reorganization or something. I certainly hope, if nothing else, that the employees will get paid. This whole thing is a terrible shame.
The former members of the Board of Directors would like to reiterate our support for Goodwill operations, its mission and Keiko Nakamura’s leadership during this time.
On Friday evening at a meeting of the Board, the Board resolved to cease operations because Goodwill’s cash flow position and forecast had become unsustainable.
At the meeting the Board also passed a resolution instructing Ms. Nakamura to continue her role as CEO and her strategy, taking the necessary steps required to cease operations as quickly as possible.
There are significant business challenges, including shifts in the value of the salvage marketplace, declining retail sales and the need to restructure retail store costs. These are the business realities that led the board to resign.
The board has given Ms. Nakamura a mandate to continue discussions with the union to help address the financial realities facing the organization.
Goodwill is a unique social enterprise, where majority of funding and services are self-driven through consumer and donated goods. In its current state, Goodwill’s operations model was not sustainable. This was the imperative that led to our decision.
The Globe and Mail's Serena Ross outlined the scale of this.
After a nearly 80-year history, Southern Ontario-area Goodwill stores suddenly closed their doors on Sunday because of what their CEO called a “cash-flow crisis.”
The closings affect the jobs of more than 430 people, including many who had struggled to find employment, though it’s unclear if the move will be permanent.
“Currently, this is a fluid situation and Goodwill is exploring a variety of options to continue its decades-long mission,” chief executive officer Keiko Nakamura wrote in a statement on Sunday.
The non-profit – one of several Goodwill chapters in Canada, each of which is run separately – said it would release more information Monday afternoon.
In her statement, Ms. Nakamura blamed the financial problems on “a number of factors affecting the retail environment.”
Annual reports show growing operating deficits for Goodwill starting in 2013 and topping $1-million in 2014, after previously achieving small surpluses.
Apparently these employees will not get paid this week. It's worth noting that this failure occurred under Ms. Nakamura, a person who was fired in 2011 from her position as the head of Toronto Community Housing, on account of excessive expenditures.
I've visited different Goodwill locations in the city on occasions since I've moved to Toronto. I hope something can be salvaged of the chain, through reorganization or something. I certainly hope, if nothing else, that the employees will get paid. This whole thing is a terrible shame.
