WATCH: Target is preparing for its departure from Canada, with liquidation sales set to begin on Thursday. But as shoppers search for deals, the employees are grumbling and the creditors, who are owed billions of dollars, are getting nervous. Mike Drolet has the story.
Lawyers for Target Canada won approval on Wednesday to begin liquidating stores across the country beginning tomorrow.
Justice Geoffrey Morawetz of the Ontario Superior Court approved a plan presented by Target Canada to start clearing out merchandise at discounted prices beginning Thursday.
Target Corp. spokeswoman Molly Snyder said stores across the country have been preparing the launch of a coordinated sale that would see discounts of five to 30 per cent off regular prices.
Morawetz must also determine whether Target can begin to sell off its Canadian real estate assets. The proceeds from the liquidations and asset sales will go toward paying back a multibillion-dollar debt load owed to creditors, which span hundreds of suppliers, landlords and various levels of governments owed taxes.
In addition to its remaining inventory, Target’s shelving and equipment will also be sold to shoppers.
The U.S.-based retailer announced last month that it will be closing all 133 of its Canadian stores and laying off more than 17,000 staff. The U.S. chain arrived in Canada to widespread fanfare in March 2013, but a series of operational missteps led to the demise of the Canadian chain less than two years after launch.
— With a file from Canadian Press