CBC: Goodwill closes stores across GTA due to 'cash flow crisis'

[inanna]

Posted: Jan 17, 2016 12:09 PM ET|

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 Keiko Nakamura, chief executive officer of Goodwill Toronto, Eastern, Central and Northern Ontario.

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.

A crudely printed sign in the Richmond Street East storefront in Toronto said simply that the store was closed "due to unforeseen circumstances."

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.

Link: http://www.cbc.ca/news/canada/toronto/goodwill-gta-lockout-1.3407732?cmp=rss

[laundry_queen]

1. This seems like some kind of massive mismanagement

I mean, it's true that cash flow issues can close down even the most profitable company, but really, any business with retail locations are usually considered to be decently cash flow positive, especially one with large subsidies and free inventory. I smell something with regards to the CEO here. I think someone may have been a bit too greedy...when was their last audit?

[arikara]

2. Charities are changing

The Mr has been working for a charity for 32 years for a very small wage for what he's done for them over the years, as well as running the place largely with volunteers so the money he raised went to where it was supposed to. Now he's reaching retirement age, the board moved him into a made up position because he's too well known and they don't dare get rid of him like they did the rest of the older staff; and they are now hiring based upon education and degrees. Of course the new people want WAY more money, and they also need paid assistants for themselves because they don't know how to do the job plus they don't want to learn from the people who actually did it for years. I'm not kidding when I say they now have 7 highly paid people doing what he used to do by himself; and the place is sadly going downhill. Hopefully he can get out of there soon, he can't stand it any more. He knows the other places in town and says they are all going that way, charity has become a lucrative business to get into. Maybe something like that is what happened with Goodwill, I wouldn't be a bit surprised.

[laundry_queen]

3. Oh, I know

I look at how some of the charities in the US have become big business, how the CEOs are pulling in high 6 figure salaries...ugh it makes me want to puke. As always, it's the people at the bottom though who still end up being taken advantage of, whether it's because they are low paid or are volunteers, while the top executives rake in the money. I hope your Mr can get out soon. I've been wanting to work for non-profit for awhile now, but taking a look at some of these new executives and knowing what they will demand of me (I'm in accounting) I don't think I can do it.