Target Says It Has Received Canadian Government Approval To Wind Down Its Operations

After announcing that it will exit the Canadian market, Target (NYSE: TGT) confirmed it has obtained an Initial Order from the Ontario Superior Court of Justice for creditor protection under the Companies' Creditors Arrangement Act.

The order allows Target Canada to proceed with a court-supervised wind-down of its business and authorizes the company to provide a debtor-in-possession credit facility of $175 million to finance its operations during the proceedings.

See Also: Target Says Au Revoir To Its Canadian Operations, Plans To Fully Exit Canada

The Court also approved a $59 million Employee Trust for the benefit of Target Canada's employees.

“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,” Target's Chairman and CEO Brian Cornell said in a press release. “That is why we took the unique step of establishing the Employee Trust.”

Target has filed a form 8-K that details the financial implications of its decision.