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Toronto, An Ontario judge has given the green light to a compromise between Target Canada and its landlords over properties the retailer will soon leave vacant.
The revised agreement, which was reached earlier this week but required court approval, gives Target Canada until the end of June to finish selling its store leases.
Both Target Canada and its landlords agreed to have a court-appointed monitor supervise the sale, in a deal which shifts control away from the company.
The retailer has set May 15 as the deadline for wrapping up the sales process, with a final date for deals to close set for June 30.
The revised agreement addresses landlord concerns that delays could leave unoccupied properties in limbo.
Some of the landlords who own properties leased by Target include RioCan Real Estate Investment Trust (TSX:REI.UN) and Primaris, a division of H&R Real Estate Investment Trust (TSX:HR.UN).
Target Canada is in the middle of liquidating its 133 stores across the country. The U.S. retailer decided to scrap its Canadian stores after underwhelming sales showed it wouldn’t turn a profit for several years.
Among other concerns raised during the hearing Wednesday was the fallout of Target closures on the franchised pharmacists who operate at some locations.
A lawyer representing the pharmacists said Target is leaving them without much financial support, with no plans to buy back medication or help to cover the cost of closing and relocating their operations.
William Sasso, a lawyer for the Pharmacy Franchisee Association of Canada, said Target is focused on closing its stores.
“These pharmacists aren’t endeavouring to wind down their operations,” Sasso said.
