TORONTO – Target Canada Co. said Friday it has reached an agreement using its former landlords whose leases were terminated included in the company’s plans to shut down its Canadian stores.
The retailer said the settlement supplies a framework for a resolution of their court-supervised windup and handles the landlords’ claims against both Target Canada and Target Corp.
Under the agreement, the landlords will support the company’s plan underneath the Companies’ Creditors Arrangement Act.
Landlords holding guarantees from Target Corp. will get payment in exchange for a contractual release.
The U.S. retailer announced this past year it was shutting all of its Canadian stores, only two years after its highly anticipated launch north from the border.
Target said the computer monitor overseeing the procedure estimates that unsecured creditors will get approximately 66 per cent to 77 per cent of the items they’re owed.
The company said it expects creditors to possess a opportunity to vote on its intend on May 25 and, susceptible to approval, intends to seek court approval on June 2.
