Canada: Sobeys owed $3 million after Target closure
The retail fiasco left a long list of creditors owed more than $5 billion in total, according to documents filed by Alvarez & Marsal Canada Inc. of Toronto.
Several are owed more than Sobeys after the shutdown of Target Canada announced Jan. 15. However, the amount owed Sobeys is by far the largest for any Nova Scotia supplier of goods and services.
Target Inc. in the United States sought protection for its Canadian unit under the Companies’ Creditors Arrangement Act.
Target Canada has until mid-February to file a proposal to creditors on the amounts owed. More than 400 full-time and part-time workers in the province lost jobs as a result of the shutdown that affects stores in Halifax, Dartmouth, Bedford and Sydney. Target Canada announced this week that liquidation sales at its locations will begin within weeks.
Target had a wholesale distribution deal with Sobeys that saw the grocery chain supply stores with some food and grocery products. When the deal was struck in 2011, it was described by Sobeys as a source of supply chain efficiencies that would lower the grocer’s costs and raise revenues.
The list of Nova Scotia creditors owed money includes amounts ranging from several hundred dollars to several thousand.
Source: thechronicleherald.ca
