As COVID-19 reshapes our economy, our newsletter will help you unpack the news from the day.
Target Corp said on Thursday that it will cease operations in Canada and has filed for bankruptcy protection for its Canadian subsidiary.
Target has struggled since its 2013 launch in Canada. In November, the company announced it would review the future of its Canadian business after the holiday season.
Huge supply-chain problems left Canadian stores thinly stocked, disappointing shoppers who had anticipated Target’s move into Canada, where Wal-Mart has dominated the discount retail space.
Target has 133 stores in Canada employing 17,600 workers.
According to a Target press release, if a court approves it, the company would create a trust fund of $59 million for employees, giving them a minimum of 16 weeks of compensation. The Canadian stores would remain open during liquidation, according to Target.
In the U.S., Target is performing better than expected. The company said Thursday same-store sales at U.S. locations increased by 3 percent in the fourth quarter, thanks to more online purchases and store visits than predicted.
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