Target Canada has reached a deal with its former landlords, including Alberta-based Primaris, which owns and operates the St. Albert Centre, in St. Albert.
After two years of distribution problems, dissatisfied patrons and $2.1 billion in losses, Target Canada filed for bankruptcy on Jan. 15, 2015. Three months later the failed retailer closed all 133 stores, laid off 17,600 employees and left 100,000-square foot gaps in shopping centres across the country – many of which still need to be filled.
It is estimated that Target Canada owes landlords and businesses upwards of $2.6 billion.
The deal announced in April would see unsecured creditors receive 66 per cent to 77 per cent of their proven claims. The money will be allocated after guaranteed leases have been repaid.
Primaris is part of the group of landlords filing claims against Target Canada for lost revenue on leases and costs incurred while backfilling the locations.
The recovery process has taken over a year, but Primaris CEO Patrick Sullivan is happy with the deal currently on the table.
“It’s been a very long time in finalizing,” Sullivan said.
