Retailer closing 700-worker warehouse in Indiana

SOUTH BEND, Ind. — A northern Indiana distribution center with about 700 workers will be shut down as part of the closing of the A.J. Wright discount stores chain.

Parent company TJX Companies opened the 540,000 square-foot South Bend distribution center in 2004 with the expectation that it would eventually have 800 workers. The company based in Framingham, Mass., said in a filing with Indiana's Department of Workforce Development that it expected to start eliminating its 725 jobs in February.

The closing is part of plans the company announced Friday to close the A.J. Wright chain to concentrate on its T.J. Maxx and Marshalls stores.

TJX spokeswoman Sherry Lang said that the company wasn't ready to discuss plans for the South Bend distribution center site.

Local officials were surprised by the closing announcement. Jeff Rea, president of the Chamber of Commerce of St. Joseph County, said the group had helped the warehouse hire about 20 people in August.

"All indications were that things were going well," Rea told the South Bend Tribune. "They always had their hiring sign out."

Rea said he was optimistic about the distribution center's future because it is relatively new and has plenty of land for possible expansion.

"This had nothing to do with South Bend. It was symptomatic of what was happening corporate-wide," he said. "We all thought it would be around for a long time."

TJX operates two other distribution centers in Indiana — one in Evansville that services the T.J. Maxx chain and another in Brownsburg that supplies items to HomeGoods stores.

South Bend Mayor Stephen Luecke said he didn't think the city could have done anything to keep the distribution center open since the whole A.J. Wright chain is being closed.

"If TJX is looking to sell or lease this building, there may be a couple of local companies that would look at expanding into it," Luecke said. "But TJX may in fact want to mothball the facility for a period of time, because as retail picks back up again, it may still fit into their distribution system."

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Information from: South Bend Tribune, http://www.southbendtribune.com