Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Target leaves other companies in the lurch as they liquidate

Target will shut down in Canada, leaving suppliers and other companies in the lurch as they get their finances in order. They say their goal is to exit in a fair and orderly way.

target

target

Target-related companies feeling the pinch

When Target Canada made the tough decision to close their doors last month, it was only a matter of time before the financial impact started to hit those associated with the company. We’ve written on how the employees in Canada have suffered. Now businesses associated with Target are starting to feel the hit.

The financial consequences of Target filing for bankruptcy protection last month in Canada are pretty severe. It is estimated that Target will ultimately owe more than 5 million dollars to their suppliers and service providers. Businesses are speaking out about the issues they are facing due to the closings.

bar
Minnesota based company, Retail Merchandising Service, who has worked with Target in their U.S. stores for decades, has benefited from Target’s success here in the states. When Target moved to Canada, so did they. The company was responsible for organizing inventory displays as well as the hiring and training of employees to do these jobs.

Retail Merchandising Service president, Phil Lamers, hopes to be compensated in the bankruptcy process but has been asking himself when that payment will occur. When it does occur, he’s also wondering just how much he will end up receiving, “Maybe zero. It’s really hard to say at this point,” Lamers says in a news interview.

Target seeks to leave Canada in a “fair and orderly way”

Lamers has a good attitude about things and knows that sometimes, as a business owner, you have to be prepared to take hits like this. Target has issued a statement, “Target Canada remains committed to managing its exit from Canada in a fair and orderly way.”

Advertisement. Scroll to continue reading.

Lamers’ business is certainly not going to be the last company frustrated over how things are shaking out with the closing of Target stores in Canada. According to reports, close to 2,000 businesses are waiting for payment from Target. No one will know anything until the liquidation process is completed.

The only consolation these businesses have right now is Target voicing their clear wishes to make their Canadian exit as smooth a process as possible on employees and businesses that will be impacted by their leaving. All eyes on them to see if they make good on their promises.

#TargetEh

Written By

Emily Crews is a staff writer at The American Genius and holds a degree in English from Western Kentucky University. Reading, music, black coffee, and her two little girls rule her life. She sees herself one day running a tiny bookstore at the end of the Earth. In the meantime, she is thrilled to write for AG and also does copy editing (team Oxford comma) to keep her brain from turning to mush.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business News

Retailers are on edge for the upcoming holiday season as Target announces during third-quarter earnings call a $400m loss due to crime.

Business News

Target originally had their forced retirement age set at 65, but coincidentally sets it back prior to CEO nearing cutoff.

Business News

(BUSINESS NEWS) Target is launching same day delivery - will we save money by nixing impulse buys, or will the convenience make us spend...

Business News

(BUSINESS NEWS) Retailers everywhere are feeling the pressure from Amazon. Yet, Target is taking that pressure and producing more stores.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.