Toronto—Target Corp. has expedited its exit from the Canadian market.
Working on a schedule that should see all 133 stores in Canada closed by mid-April, the court-appointed monitor overseeing the closure updated the court:
“It is anticipated that the pace of delivery of vacate notices … will continue to increase over the next two weeks,” the monitor wrote in an update filed with the court.
“All stores are expected to be closed to the public as early as mid-April 2015.”
In January target announced it would be closing the stores, saying it would take years to turn a profit after a disastrous launch hurt its reputation with Canadian consumers.
A liquidation has been underway since last month, while lawyers are in court trying to iron out the details of Target’s departure. “A variety of creditors that include landlords, suppliers and others impacted by the closures, are trying to determine what will happen to money they’re owed.”
Also ahead for Target, a court decision on the $2.22 million sales of a variety of intellectual property assets from Target Canada back to its U.S. parent, Target Corp, “including both in-store and outside signs, 28,000 branded shopping carts, and 912,000 shopping bags.”
Court documents say Target-branded items can’t be sold in the liquidation process because they’re all permanently stamped with the company’s name.
“It is not possible to remove the Target branding from most of the (intellectual property assets) without destroying or substantially decreasing their value,” the monitor said, noting an outside appraiser was involved in the process. “The external signage cannot be repurposed and in any event has no value based on the third party bids (and) estimates of value that have been received.”