The Globe and Mail reports that Target Corp. has filed for creditor protection and will be closing all Canadian stores.
U.S. discounter Target Corp. is closing its money-losing stores in Canada after almost two troubled years here.
The Minneapolis-based retailer said on Thursday it filed an application for protection under the Companies’ Creditors Arrangement Act with the Ontario Superior Court of Justice in Toronto.
“After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021,” said Brian Cornell, who became the new chief executive officer last summer.
An article in the Financial Post says that Target will remain open during a court-supervised liquidation period and is working to ensure employees (17,600) are paid at least 16 weeks severance. In total 133 stores will be closed in Canada as Target pulls out of the Canadian market completely.
The news was met positively by shareholders as the stock increased some 8% in trading on the news. In the US Target operates over 1700 stores which are operating profitably.
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