B&H Photo, which has been a Mecca in Manhattan to tech fans since 1973, told its mostly Orthodox employees in a memo last Wednesday that it is laying off about 400 of them.
B&H closed its store at Ninth Ave. and West 34th Street on March 16. Menashe Horowitz, the store CEO, issued a statement back then, saying: “With the spread of this pandemic, we want you to know that there is no higher priority for us than the safety of our team and community. As a result, we’ve decided to temporarily close the B&H New York City SuperStore until further notice. Our main focus is to keep you and every member of our team feeling safe, healthy, and supported during these difficult times.”
Horowitz continued: “Our online and telephone channels as well as store pickup of online orders remain open for business as usual, which will continue as long as we can do so safely. Our sales and customer service teams are available to answer your questions via phone, email or chat.”
One B&H employee told the New York Post he was surprised by the company’s decision to lay off so many staffers, because the company’s call center is “busy as hell” taking orders for “computers, movie cameras and accessories for setting up a home office.” It should be noted that many tech retailers in the US, Europe, and Israel are reporting booming business, since millions of middle class families are forced to stay at home.
The store’s HR Director Izzy Friedman told staff last Wednesday the store had “waited as long as possible” before deciding to let them go, and had been paying workers “through the Passover holiday break, and beyond to make this easier.”
B&H owner, Herman Schreiber, and most store employees are Satmar Chassidim. The store is closed on Shabbat, Jewish holidays, and Christmas. This includes online orders.
Last November, B&H Foto & Electronics Corp. was sued by the NY State Attorney General Letitia James for knowingly failing to pay taxes on the discounted portions of its merchandise, a discrepancy which, over 13 years, allegedly amounted to at least $67 million, for which B&H did not pay at least $7 million in taxes. B&H offered “instant rebate” deals to its customers, and the manufacturers reimbursed the company, but the company still had to pay taxes on the total price of the item, including the discounted part.