[LINK] "Target to close all 133 Canadian stores, gets CCAA protection"

[rfmcdonald]

This, reported by the CBC, is a non-trivial catastrophe. Even ignoring the eighteen thousand jobs lost, as noted in the comments at blogTO the loss of so many anchor stores at malls will have a devastating effect on many of the more marginal of these.

Target says it plans to discontinue all operations in Canada and has been granted protection from creditors, less than two years after opening to much fanfare.

In a release early Thursday, the U.S. retail chain said it will close all its locations in Canada. There are 133 stores across the country with about 17,600 employees.

The company launched in Canada in March of 2013, not quite two years ago.

But after high expectations, the chain failed to deliver right out of the gate as customers faced higher-than-expected prices, and empty shelves as the retailer had problems with its distribution chain.

Target lost almost $1 billion in its first year in Canada, and while the losses have shrank since then, the chain is still losing money daily.

Executives repeatedly promised they would get it right and reaffirmed their commitment to Canada as recently as July, but ultimately decided to pull the plug.

"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," the U.S. parent company's CEO Brian Cornell said in a release Thursday, explaining the justification for the shutdown.