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The U.S. retailer announced Thursday that it would put over 17,500 employees in the unemployment line and cost the company billions.
Target was granted creditor protection for its Canadian subsidiary, which helped its shares to increase in Thursday trading by 3%.
The company will shut all 133 of its stores in Canada and will report close to $5.38 billion in losses prior to taxes for the fourth quarter, which ends on January 31.
The losses are mainly from the writedown of the investment in Canada, as well as its exit costs and losses from operations.
Target, which is based in Minneapolis, is the second largest discount retail chain in the U.S., has had its struggles since it launched back in 2013 north of the border.
The company faced big problems with its supply chain that left some stores poorly stocked. In turn, customers became disappointed after anticipating the arrival of the retailer in their market where the discount industry was long dominated by another American based company Walmart.
In November, the company announced it would review its future for the Canadian business following the holiday season.
Brian Cornell the CEO said that the company did a rigorous analysis and were not able to find a scenario that was realistic that would give Target Canada a profit until 2021 and possibly longer.
Some analysts called for a full exit by Target from Canada to allow Target to focus on its operations in the U.S. However, the move still came as a big surprise as the scenario that had been the most likely would be fixing the unit by shutting down the stores that were performing the worst, said one industry analyst.
Target has admitted that it took on way too much, way too soon. The launch that turned out to be disastrous cost top executives their jobs last year.