Target Canada has announced it will close all of its Canadian stores, but a timeline for its withdrawal from the Canadian market has not been revealed.
The company filed an application Jan. 15 for protection under the Companies’ Creditors Arrangement Act with the Ontario Superior Court of Justice in Toronto.
Based in Minneapolis and founded in 1946, the company has 133 stores across Canada and employs approximately 17,600 people, who will lose their jobs.
However, to ensure fair treatment of Target Canada employees, Target Corporation is seeking the court’s approval to voluntarily make cash contributions of $70 million into an employee trust.
It will cover a minimum of 16 weeks of compensation, including wages and benefits coverage for employees who are not required for the full wind-down period.
One employee confirmed the company’s good will.
“Our manager told us about the shut down of the stores,” one Target employee explained. “He also helped some of us to find a new job, writing references and providing some connections.”
“I am going to receive a month’s wage as a compensation so I haven’t faced any problems with this company.”