Someone in the comments section on Zerohedge speculated that the “plumbing issues” claim is simply a standard way for a company to get around notification requirements of 2 months before closing.
https://www.law.cornell.edu/uscode/text/29/2102
“(A) An employer may order a plant closing or mass layoff before the conclusion of the 60-day period if the closing or mass layoff is caused by business circumstances that were not reasonably foreseeable as of the time that notice would have been required.”
So why they want to close 5 stores in a hurry?
To save on labor costs, or because inventories are low and prices are rising? 5 stores is a very tiny portion of the 4500 they have.
I think the theory that it’s a pretext to avoid notification requirements is probably the most likely. There must be a lot of marginal stores out of 4500. They can close the marginal stores to stop losing money, and send a message to politicians and employees: if you push us, we can leave.
With their business model, Wal*Mart must have thin margins, it wouldn’t take much to push them into unprofitability in many of their stores.
“...So why they want to close 5 stores in a hurry?
To save on labor costs, or because inventories are low and prices are rising? 5 stores is a very tiny portion of the 4500 they have.”
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I’d bet that these 5 locations are perpetual money losers. It’s routine for good companies with numerous locations to periodically close ones that are not contributing to profits and open new ones that have more potential.
Plumbing as an excuse for avoiding 60 days notice however is NOT good if that is really the case.