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JHB

(38,111 posts)
6. It costs money to close things too...
Sun Feb 4, 2018, 12:40 PM
Feb 2018

When companies are deep in the red it is pretty easy to decide to close locations, but in better times there’s more of a cost/benefit calculation in doing so. If a location is only marginally profitable, Corporate will be deciding whether they want to incur costs (severance pay, property issues, tax issues, etc.).

The windfall from the Trump Tax Handout will in some cases be enough to make the calculation work out to “let’s wash our hands of these while the washing is good.”

After all, their job is maximizing shareholder returns, not selling products.

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