Target will soon be a thing of the past in Canada. The U.S. company has announced it will close all 133 Canadian retail stores.
Target employs more than 17,000 people across Canada, and those jobs are now in jeopardy.
In a statement released Thursday, Target revealed it would be exiting Canada. The company’s CEO said this “difficult decision” was in the company’s best interest.
“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.
Target has struggled since it opened in Canada, with many consumers complaining of higher prices and lower quality merchandise available in Canada stores. The Minneapolis based company has admitted it moved too fast, opening too many stores when it launched in Canada back in 2013.
Last year, the company reported losses of close to $1 billion since it opened in Canada.
"The Target Canada team has worked tirelessly to improve the fundamentals, fix operations and build a deeper relationship with our guests. We hoped that these efforts in Canada would lead to a successful holiday season, but we did not see the required step-change in our holiday performance," Cornell said.
Target has applied for protection under the Companies' Creditors Arrangement Act and are seeking the court’s approval to make cash contributions of $70 million into an Employee Trust. The fund would ensure all employees receive a minimum of 16 weeks compensation, including wage and benefits coverage for employees.
The company has yet to announce when it will close their Canadian stores.
Target has asked private companies to oversee the liquidation and real estate sale process.
Target distribution centre in Cornwall shutting down
Target’s 1.4 million square foot distribution centre in Cornwall is also shutting down.
Mark Boileau with Cornwall Economic Development said about 350 people will be out of work.
Many businesses see the seaway town as the ideal location for a distribution centre because of its direct access to Highway 401, rail lines and it’s beside the St. Lawrence.
Walmart, Shoppers Drug Mart & Loblaws all have distribution centres in Cornwall’s Industrial Park.
