The insolvency resulting from Target’s colossal failure in Canada is the biggest in the history of this country’s retail sector, according to a blog post by Lou Brzezinski, partner at Blaney McMurtry on the law firm’s website.
Brzezinski is leading his firm in an effort to maximize the amount of returns Target Canada’s creditors will receive during the process.
“Blaneys, on behalf of seven Target Canada creditors, including Nintendo of Canada, Universal Studios Canada and Mars Canada, has asked that an ad hoc suppliers’ committee be established to represent all creditors in relation to Target Canada’s $1.9 billion debt to Target Canada Property LLC,” Brzezinski said in his post.
“Blaneys is of the view that ad hoc creditors’ committees increase the efficiency of the insolvency process, protect and advance creditors’ interests, minimize fees and expenses and add value for all stakeholders.”
The committee’s motions are set to be heard after all inter-company claims have been decided on, which is expect to be in July or August.
The Canadian arm of the retail giant announced January 15 that it was pulling out of the country and had filed for creditor protection. The company announced that all 133 stores across Canada, including the 15 in British Columbia, would be closed, affecting 17,600 employees in total.
At that time, the company owed $2.4 billion to creditors, including suppliers, employees and governments.
