16 Ontario Goodwill stores shut down

Several hours later, Goodwill Toronto, which collects donated clothing and goods, then sells them to fund programs for people with learning and physical disabilities, announced it was closing the 16 stores it runs, throwing some 450 people out of work.

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.

Workers arrived at their workplaces in the GTA, Barrie, Orillia and Brockville yesterday to find stores and collection centers closed and no explanation as to what was happening, union lawyer Denis Ellickson told the Star.

“It has come as a complete shock to the union and its employees,” Ellickson said. “We heard news late last evening (Saturday) that one of the stores had closed. This morning we discovered all of the stores had closed with no notice or no reason given.”

Under the collective agreement between the union and Goodwill Industries of Toronto, Eastern, Central and Northern Ontario, the company is required to give employees 30 to 60 days’ notice before closing any stores, and that did not happen, Ellickson said.

The workers are represented by the Canadian Airport Workers Union.

The federally registered charitable organization “is run as a business to make money,” the lawyer said. “We now know what is happening but we still don’t know why.”

The union learned Sunday that the entire board of directors of Goodwill, with the exception of Nakamura, had resigned Friday, precipitating the announcement on the closing down of the entire operation.

The news release said 16 stores, 10 donation centres and two offices in Toronto, Mississauga, Brampton, Newmarket, Barrie, Orillia and Brockville were closed.

“As you can understand this a tremendously difficult time,” Nakamura said in the statement.

Goodwill Industries of Toronto, Central and Northern Ontario reported total revenue in 2014 of just over $28 million and expenses of $29,218,954, according to the registered charity’s tax filings — which also show it received more than $4 million in government funding.

“It’s stunning to us that this happening because of the amount of revenue that they have either generated or received from various government levels,” Ellickson said.

The charity lists one employee as earning between $200,000 and $250,000 and another with a salary range of $120,000 to $150,000. The employees are not named in the tax filings.

“It’s supposed be a charitable organization, but they are paid handsomely,” Ellickson said. “Some of those people who are now terminated are vulnerable individuals with disabilities who have been hired through these government sponsored programs.”

“It’s tragic for all of them,” Ellickson said. While the salary range for the workers is $11 to $27 an hour, most earn an average of $14.

The Star was unable to reach Nakamura for comment.

As donated goods piled up outside the Goodwill collection centre on Richmond St. yesterday, donors were left wondering why no-one was there to receive them.

“I come here with donations quite often, actually,” said one woman, dropping two shopping bags of clothing and shoes. “I sure hope this isn’t a permanent thing. That would be a shame.”