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.
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.”
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.
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