Target Canada reaches deal with former landlords as it nears vote on plan

TORONTO – Target Canada Co. said Friday it’s reached an agreement with its former landlords whose leases were terminated included in the company’s intends to shut down its Canadian stores.

The retailer said the settlement supplies a framework for a resolution of its court-supervised windup and deals with the landlords’ claims against both Target Canada and Target Corp.

Under the agreement, the landlords will offer the company’s plan underneath the Companies’ Creditors Arrangement Act.

Landlords holding guarantees from Target Corp. will get payment in exchange for a contractual release.

The U.S. retailer announced this past year it had been shutting all its Canadian stores, 3 years after its highly anticipated launch north of the border.

Target said the computer monitor overseeing the procedure estimates that unsecured creditors will receive approximately 66 per cent to 77 per cent of the items they’re owed.

The company said hello expects creditors to possess a opportunity to vote on its plan on May 25 and, susceptible to approval, intends to seek court approval on June 2.