After just two years in Canada, Target is shutting down all 133 stores there and laying off more than 17,000 employees after the chain
failed to produce profits, the company announced Thursday.
"After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021," Brian Cornell, Target Corp. chairman and CEO, said in a press release.
"Personally, this was a very difficult decision, but it was the right decision for our company. With the full support of Target Corporation’s Board of Directors, we have determined that it is in the best interest of our business and our shareholders to exit the Canadian market and focus on driving growth and building further momentum in our U.S. business."
In a separate press release, the Minneapolis-based company said that it received an Initial Order from the Ontario Superior Court of Justice for creditor protection and will begin a supervised "wind-down of its Canadian businesses."
Target Canada also established a $59 million Employee Trust to help the 17,600 employees who will lose their jobs, the press release said.
"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. That is why we took the unique step of establishing the Employee Trust," Cornell said. "While this is a difficult decision, we believe it is the right one for Target. We had great expectations for Canada but our early missteps proved too difficult to overcome."
The Globe and Mail reported in February 2014 that the company had "stubbed its toe badly, unable to do the basics of replenishing its store shelves while taking criticism for charging noticeably higher prices than at its U.S. stores."