Target gets Canada government OK to wind down its Canadian operations

New York -- Target Corp. has received official approval from the Canadian goverment to shutter its troubled operations in Canada. The retailer said it has obtained an Initial Order from the Ontario Superior Court of Justice for creditor protection under the Companies' Creditors Arrangement Act.



The order allows Target Canada to proceed with a court-supervised wind-down of its business and authorizes the company to provide a debtor-in-possession credit facility of $175 million to finance its operations during the proceedings.



The Court also approved a $59 million Employee Trust for the benefit of Target Canada's employees.



“We do not take lightly the impact that our decision to discontinue operations in Canada will have on Target Canada's team members who have worked tirelessly to make improvements to the guest experience,” Target chairman and CEO Brian Cornell said in a press release. “That is why we took the unique step of establishing the Employee Trust.”