Less than two months later, the parent company decided to “deconsolidate” with its wholly owned subsidiary and Target Canada filed for protection in Ontario Superior Court under the Companies’ Creditors Arrangement Act.
The decision resulted in the closure of all 133 stores operated by Target Canada and the layoffs of 17,600 employees.
, also known as the “CCAA”, is a federal law that allows restructuring a of company.
The numbers were clearly not good, but the commentary provided by Target in its Securities and Exchange Commission filings was somewhat oblique.
“The collective interaction of a broad array of macroeconomic, competitive and consumer behavioral factors, as well as sales mix, makes further precision and analysis of sales metrics infeasible,” said Target about its Canadian operations.
Sears Canada filed for bankruptcy under CCAA and is not currently planning to completely liquidate.
A court-appointed monitor will supervise Sears Canada, and not Eddie Lampert, who could get nothing for his 45% ownership of the company.