Target closing Canadian stores
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Jan 15, 2015  |  Vote 0    0

Target closing Canadian stores

Our London

It came, it saw, it failed miserably.

After two years of missteps and miscalculations, Target is closing all of its 133 stores, including two in London at Masonville Place and Westmount Shopping Centre, and leaving the country.

In a media release, the company said an estimated 17,600 employees will be losing their job, however the company does plan to offer them all a full 16 weeks of severance.

Target Canada has applied to cease operations under the Companies’ Creditors Arrangement Act, or CCAA and is seeking the appointment of Alvarez & Marsal Canada as Monitor in the CCAA proceedings to oversee the liquidation and wind-down process for Target Canada and its subsidiaries.

"When I joined Target, I promised our team and shareholders that I would take a hard look at our business and operations in an effort to improve our performance and transform our company,” said Brian Cornell, Target Corporation Chairman and CEO. “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.”

Target entered Canada amid much anticipation and fanfare. Shoppers who regularly cross the border to shop believed they would see a carbon copy of the store they liked so much in the U.S., but instead were frustrated by higher prices and a smaller variety of merchandise.

The past year was a disaster for the company in many ways. Its Canadian operations lost nearly $1 billion and a data breach affecting 40 million customers were among the fiascos that cost CEO and President Gregg Steinhafel his job last May.

The stores will remain open while the company liquidates its Canadian stock.

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