More than a year after Target announced plans to shutter its 133 stores in Canada, the retailer is finally ready to put the failed business venture behind it. The company recently reached a $30 million compensation deal with the landlords of these former Target stores.
The Minneapolis Star Tribune reports that Target reached a settlement in which the retailer will cover 66% to 77% of landlords’ claims.
A spokesperson for Target said she couldn’t share details about the deal.
Canadian newspaper, The Globe and Mail, citing unnamed sources, says the deal works out to about $30 million for the landlords.
Prior to the finalized agreement, the Star Tribune reports, a Canadian judge struck down Target’s previous proposal after landlords said the company wasn’t fulfilling its promise to cover future losses in the event of store closures.
“This agreement is the result of months of tough negotiations with stakeholders,” Aaron Alt, the chief executive of Target Canada, said in a statement. “We are delighted to have achieved a consensual path forward and believe that the Amended Plan is in the best interests of the stakeholders of Target Canada. We remain focused on achieving a timely wind-down of the [court] proceedings, and distributing proceeds to stakeholders as soon as possible.”
The Star Tribune reports that Target expects to receive final approval of its Canadian wind-down plan on June 2.
Target’s exit from the great white north began in January 2015, when the retailer announced that after a “thorough review” it had determined there wasn’t a realistic scenario in which the venture would be profitable.
Target reaches settlement with Canadian landlords as it winds down there [Minneapolis Star Tribune]
by Ashlee Kieler via Consumerist
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