Target Canada has reached a deal with its former landlords and unsecured creditors that will see them get back at least two-thirds of the money they say they are owed by the retail chain that collapsed in 2015.
"This agreement is the result of months of tough negotiations with stakeholders," Target Canada's CEO Aaron Alt said. "We are delighted to have achieved a consensual path forward and believe that the amended plan is in the best interests of the stakeholders of Target Canada. We remain focused on achieving a timely wind-down of the CCAA proceedings, and distributing proceeds to stakeholders as soon as possible."
Under the deal, creditors such as landlords who were left in a lurch when the chain shut its 133 stores across Canada last year will get "approximately 66 to 77 per cent" of what they had claimed.
Not all the retailer's former landlords are still fighting for what they say they're owed. Target's largest, Riocan, owned 26 stores occupied by Target and settled for $132 million in November in exchange for releasing Target of any further obligations, so is not included in Friday's proposed deal.
The court-appointed monitor in charge of the bankruptcy hopes that creditors can vote on the proposal on May 25 and, subject to approval, intends to seek court approval on June 2.