Report: Target Canada landlords want full bankruptcy

Mississauga, Canada – Landlords holding the leases of Target Canada stores reportedly are requesting that Ontario Superior Court put Target Canada into full bankruptcy. According to the Toronto Globe & Mail, the move would remove control of liquidation of the company’s assets from Target and put it in the hands of a third-party trustee.



Currently, Target Canada has control of how it disposes of leases and other assets under the Companies’ Creditors Arrangement Act. Landlords concerned that Target Canada does not have enough urgency to liquidate vacant storefronts want the company moved into the Bankruptcy and Insolvency Act, which would assign a third-party trustee to auction off leases and dispose of other assets.



Target Canada has filed for a 45-day extension of the lease sale process. Value of Target’s Canadian store leases are estimated at between $1.8 billion and $2 billion. Landlords and Target Canada are expected to begin legal arguments in Ontario Superior Court on Wednesday, Feb. 11.