Goodwill Industries unexpectedly closed their doors to staff and customers Sunday at 18 locations in Belleville, Brockville, Orillia and the Toronto area, putting 400 employees out of work for the time being.
Goodwill Toronto, Eastern, Central and Northern Ontario CEO Keiko Nakamura (who was fired from her role as CEO of Toronto Community Housing Corporation back in 2011) said in a brief statement that the closures were related to a “cash flow crisis”.
“Due to a number of factors affecting the retail environment, Goodwill is facing a cash flow crisis. Goodwill will be reaching out to the union, stakeholders and all levels of governments to bring clarity as soon as possible.”
450 unionized employees have been affected, and have received no explanation from management.
Many are surprised that a business that relies on donated goods is running into problems. The Ontario Goodwill operation reported total revenue in 2014 of about $28 million and expenses of $29,218,954, as detailed in their tax filings.
There are reports that donors are arriving at shuttered Goodwills and dumping their goods in front of the doors.
Critics have attacked Goodwill CEO Jim Gibbons’ multi-million dollar pay as part of the problem, however, Gibbons’ reported compensation in 2011 was $725,000.
Why do you think Goodwill is struggling? Did you routinely donate unwanted goods to Goodwill? How much of those goods was actually unusable garbage?