Target Corporation isn’t the only company losing money by closing its Canadian division. The retailer owes nearly $3.8 million to more than 60 businesses in Minnesota.
KSTP-TV reports that debts from the retailer’s failed international expansion range from $1,000 to $500,000.
Those debts are currently in limbo, while 67 business owners wait for Target to complete its liquidation process.
One business owner tells KSTP that he is owed $252,330, but invoices not listed with Target Canada filed for creditors protection last month brings the total to more than $400,000.
“It really hurts,” the man says of his anticipation to only receive pennies on the dollar for the debts.
The man says his company, which helped organize inventory displays at Target stores, will likely lay off 200 part-time employees in Canada and take out a line of credit to pay for severance packages as a result of Target Canada’s demise.
“When something like this happens, we have to borrow money,” he tells KSTP.
A spokesperson for Target says the company remains committed to repaying creditors “in a fair and orderly way.”
In all, Target Canada has a total of 1,793 creditors, with most money owed to other Target companies. Target Brands Inc. and other subsidiaries based in Minneapolis are owed more than $3.4 billion.
Minnesota Businesses Owed Millions as Target Canada Liquidates [KSTP-TV]
by Ashlee Kieler via Consumerist
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