Why Target Canada Landlords Want It Pushed Into Bankruptcy
Target Canada landlords want the retailer pushed into bankruptcy to take away its control over lease sales for locations it’s vacating, which could be worth $2B, the Globe and Mail reports. Switching to a bankruptcy would mean a third-party trustee acting on behalf of creditors would oversee the winding down and liquidation, the newspaper notes, providing deadlines for the disposition, and more certainty to the process. Instead, the Globe reports, Target, which is under court protection from creditors, is in control and looking at a 45-day extension of the lease sale process. Richard Orzy with Bennett Jones LLP, who's representing landlords RioCan REIT and Kingsett Capital, told the Globe a vacant Target store hurts the shopping centre and all the other tenants.
Update: Target Canada has reached an agreement with its landlords on the sale of leases. A court-appointed monitor will supervise the sale, taking control away from Target.
