After being open for just over a year in Prince George, Target is closing.
Target announced yesterday that it is closing all of its stores in Canada. It has obtained an initial order from the Ontario Superior Court of Justice for creditor protection under the Companies’ Creditors Arrangement Act.
The order authorizes Target Canada to begin a court-supervised wind-down of its Canadian businesses. It also provides for a broad stay of proceedings against Target Canada and authorizes Target Corporation to provide a debtor-in-possession credit facility of US$175 million to finance Target Canada’s operations during the CCAA proceedings.
Target opened its location in the Pine Centre Mall in Prince George in early 2013. Target invested between $10 million and $11 million in upgrading the location at the mall. When it opened, it employed between 150 and 200 people.
The Ontario court also approved a $70 million employee trust for the benefit of employees of Target Canada. This trust will help provide severance for Target Canada’s 17,600 employees during the wind-down.
Target’s departure predictable says the union representing B.C. retail workers
“It’s no surprise that the Target store in Prince George was thin on staff and merchandise when they refused to hire Zeller’s retail workers – who had years of experience running a successful retail operation in Canada,” said Jason Mann, spokesperson for United Food and Commercial Workers 1518.
The United Food and Commercial Workers represented unionized Zellers employees at several stores across Canada.