TORONTO – Shoppers can expect their local Target Canada stores to begin knocking down prices starting Thursday, after the retailer received court approval to begin liquidating its stock.
The company received the go ahead following a hearing Wednesday involving dozens of lawyers representing the retailer, landlords and suppliers.
Target spokeswoman Molly Snyder said stores across the country were prepared to launch a liquidation sale that would see discounts of up to 30 per cent off regular prices.
Already many Target stores have stopped carrying perishables like milk, eggs and frozen foods, Snyder said.
The company is still clearing product out of its distribution centres, she added.
Landlords were concerned that Target’s liquidation sales would tarnish the image of their malls and take away business from other stores who are renting space.
“I think all parties are exaggerating,” Ontario Superior Court Justice Geoffrey Morawetz said.
“And I mean that quite sincerely.”
In addition to its remaining inventory, Target’s shelving, fixtures and equipment will also be sold.
The U.S.-based retailer announced last month that it would close all 133 of its Canadian stores and lay off more than 17,000 staff, just two years after it began opening stores in Canada.
Some of those reductions have already happened at its Toronto headquarters where its 770 person staff has been reduced to about 80 people, Snyder said.
The company took over old Zellers locations and began to open under the Target banner in Canada for the first time in March 2013, but failed to deliver on customer expectations.