TJ Maxx parent to divest stake in overseas off-price retailer with 400 stores in Russia

TJX Cos.
TJX,
-4.82%

said in a Thursday filing that it will divest its equity ownership in Familia, a Luxembourg-based off-price retailer with 400 stores in Russia. TJX, which is parent company to HomeGoods and TJ Maxx, says it is taking the step “in support of the people of Ukraine.” In addition to the divestiture, the company has pulled two of its executives, Group President Doug Mizzi and Chief Financial Officer Scott Goldenberg, from the Familia board, effective immediately. TJX took a $225 million, 25% non-controlling, minority interest in Familia in November 2019. As of January 29, 2022, the carrying value of TJX’s investment was $186 million. TJX may have to record an impairment charge from the sale. TJX missed profit and sales expectations in its most recent earnings report. The company’s stock is up 3.1% for the past year while the S&P 500 index
SPX,
-0.79%

has gained nearly 15%.