Target Canada files for creditor protection, plans to close all stores
Target says it plans to discontinue all operations in Canada and seek protection from creditors, less than two years after opening to much fanfare.
In a release early Thursday, the U.S. retail chain said it will close all its locations in Canada. There are 133 stores across the country with about 17,600 employees.
The company launched in Canada in the spring of 2013.
But after high expectations, the chain failed to deliver right out of the gate as customers faced higher-than-expected prices, and empty shelves as the retailer had problems with its distribution chain.
Target lost almost $1 billion in its first year in Canada, and while the losses have shrank since then, the chain is still losing money daily.
Executives repeatedly promised they would get it right, but ultimately decided to pull the plug.
"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," CEO Brian Cornell said in a release Thursday, explaining the justification for the shutdown.
Target says it filed an application in a Toronto courtroom for protection under the Companies’ Creditors Arrangement Act.
The federal law allows companies that can't pay their debts the ability to restructure themselves. Without it, the companies and individuals that an insolvent company owes money to can technically start seizing assets. But because Target has applied under CCAA, that won't happen here yet.
The company is seeking the court's permission to set up a $70-million fund to ensure all employees affected by the move get at least 16 weeks in severance pay. The stores will remain open while the company completes the liquidation process.
"Your efforts have been extraordinary, and absolutely nothing about our decision to exit diminishes your hard work and dedication," Cornell told employees in a letter on Thursday, a copy of which has been obtained by CBC News.
Target said the decision to close shop in Canada will cost between $500 million and $600 million in cash from the U.S. parent's bottom line, but results in a writedown of about $5.4 billion from an accounting perspective in the upcoming fourth-quarter earnings.
Is retail that bad these days?
Jacob, Mexx, Smart Set all folded.
So only Zara, Forever 21 and H&M?
I prefer Jacob and Mexx over the Forever 21/H&M for sure, in terms of quality and style.
I know Forever 21 and H&M are larger and more stuff to choose from but quality is really so-so. I just don't like/want "disposable" clothing after 1 season....
1 of the challenges RE: Target Canada is that they did not plan enough time to stay in Canada so as to gradually build up customer base.
This typically would require 3~5yrs or more. Take a look at Lowes Canada (Tanaka way, Queensborough landing). It took them 5+yrs to build up their loyal customer base (I'm one of them, bought numerous large ticket items from them already).
Too bad they (Target) have to go just like Zellers.
They sell something that HD canada typically would not carry (in-sto ...
Quest 發表於 2015-1-15 12:09
Normally people don't just walk in and buy a HRV and install it in their own place.and Vancouver is not that cold to have one
did you buy a HRV and install at your home?
yes, I did (bought and installed an HRV) in my house.
Starting this year: according to the new construction code: all houses built in Vancouver must have HRV installed, amongst some other things.
the HRV in construction code started about 4 yrs ago (around 2008 or 2010 Vancouver contruction code), so don't be at all surprised if most new houses built during or after that year already came built in with HRV.
Unfortunately, all those houses I've seen (with HRV) so far, most of them has been under-spec'ed or the builder bought the cheepest units possible (bought a unit (spec'ed for 2000~2500sq ft and installed it in a house >3000sq ft; or bought one that is of very old energy consumption spec (continuously running @ over 100+Watts/hr, as opposed to most recent ones that are around 40Watts/hr)
發表於 2015-1-15 06:54
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