Two years and 133 stores later, Target has announced that it will be closing all of its Canadian stores. Representatives today announced that Target Canada has obtained an Initial Order from the Ontario Superior Court of Justice to close all of its stores. The retailer is taking a $5.4 billion write-down as a result of costs associated with the Canadian business.
“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, Target Corporation Chairman and CEO. “Personally, this was a very difficult decision, but it was the right decision for our company.”
Target SVP and Treasurer Aaron Alt has been named CEO of Target Canada to execute the wind-down process, with all stores remaining open during the process.
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Additionally, Target Canada will spend $59 million for a trust to ensure fair treatment of its 17,600 employees. With the trust, nearly all Target Canada employees will receive a minimum of 16 weeks’ compensation, including wages and benefits coverage for employees who are not required for the full wind-down period.
