After announcing in January 2015 that it would shutter its Canadian operations, Target has reported that all remaining stores will close by April 12. The retailer’s three local distribution centers and Mississauga headquarters have already closed.
When news of the liquidation first broke, Target Corporation Chairman and CEO said: “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. Personally, this was a very difficult decision, but it was the right decision for our company.”
After receiving an Initial Order for protection from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA), Target went through a significant wind-down process led by Target SVP and Treasurer Aaron Alt. During the process, Alt acted as CEO of Target Canada.
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“We are pleased with the results of the liquidation sales to date and the speed at which we have moved through the wind-down process,” Alt said in a company press release. “We want to once again thank all Target Canada team members for their hard work and great adaptability through this process. The court-approved real estate sales process is underway and is expected to be completed by the end of June 2015.”
Target placed approximately $59 million into a trust to ensure fair treatment of its 17,600 Target Canada employees. Employees not needed during the wind-down process received a minimum of 16 weeks’ compensation, including wages and benefits coverage.
