Target Canada's short shelf life, capped by the announcement of a complete shut down just weeks ago, is creating problems for dozens of companies around the world that are owed money by the failed northern expansion – including a number of businesses in Minnesota.
Phil Lamers, who owns the Maple Grove-based Retail Merchandising Services, Inc., told KSTP his merchandising company is owed about $250,000 – but he doesn't think he'll get much, if any, of that back.
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MPR spoke with Brian Brown, a partner at Ideapark, which helped Target Canada put together its holiday shopping strategy. Brown said they're not on the list of creditors, and didn't disclose how much was owed – but said he let some employees go, and doesn't expect to get any money back.
Both KSTP and MPR peg how much Minnesota companies are owed at between $3.8 and $5 million.
Target owes billions in total
The total amount owed? A whopping $3.4 billion.
In addition to those Minnesota companies, there's unpaid rent and taxes Target owes Canada's government, Global News reported, plus millions to well-known names such as Hasbro, Warner Bros., Starbucks Canada and others, the Globe and Mail said.
KSTP says companies such as Retail Merchandising Services, Inc. won't know how much they'll get from Target Canada until the liquidation process is finished.
Target Canada's shut down means 133 stores will be closed, affecting more than 17,000 employees.