Calgary: Target announces plan to pull Canadian stores

Target owes vendors $3.4 billion

Long list of creditors includes Carat, KBS, Veritas Communications and National PR

Target owes hundreds of companies – including several agency partners – a combined $3.4 billion according to the company overseeing the U.S. retailer’s court proceedings.

The long list of creditors, which ranges from toy and electronics manufacturers to packaged goods giants such as Unilever ($337,784) and Procter & Gamble ($689,967), was made public by Alvarez & Marsal Canada, just one week after the Minnesota-based retailer announced plans to shutter its 133 Canadian stores.

The document shows Target owing its Montreal-based media agency Carat Canada $9.4 million, the most of the several hundred creditors listed on the public document.

Other agency partners listed on the document include the MDC Partners agencies KBS ($705,000) and 72andSunny ($134,307), National Public Relations ($122,767), marketing analytics company Environics Analytics ($24,860), Hill+Knowlton Strategies ($10,904) and recruitment-advertising agency TMP Worldwide (just over $440,000).

The list also includes small independents such as Halifax-based web design agency Eclipse Media Group, which is owed $1,380.

Toronto’s Veritas Communications, which is owed $304,580 by Target, still features a Target case study for a pop-up shop on its website. The retailer also owes money to industry groups including Advertising Standards Canada (just over $21,000) and the Retail Council of Canada ($1,926).

Asked about possible recourse for agency partners, one Toronto agency president said they would likely write off any costs in the “few thousand” range, rather than pursue legal action. “The legal costs and time involved outweigh the benefit,” he said.

As for larger costs, such as the amount owed to Carat, he said the company would likely have to “stand in line” with other creditors. “[Nine million dollars] is a serious chunk of change worth fighting for,” he said. “If they’re a public company, they will have the expertise and resources to work Target to get some of their money back. Eventually.”

Brands Articles

Diageo’s ‘Crown on the House’ brings tasting home

After Johnnie Walker success, Crown Royal gets in-home mentorship

Survey says Starbucks has best holiday cup

Consumers take sides on another front of Canada's coffee war

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Heart & Stroke proclaims a big change

New campaign unveils first brand renovation in 60 years

Best Buy makes you feel like a kid again

The Union-built holiday campaign drops the product shots

Volkswagen bets on tech in crisis recovery

Execs want battery-powered cars, ride-sharing to 'fundamentally change' automaker

Simple strategies for analytics success

Heeding the 80-20 rule, metrics that matter and changing customer behaviors

Why IKEA is playing it up downstairs

Inside the retailer's Market Hall strategy to make more Canadians fans of its designs

Metrolinx launches public education campaign

New campaign from Grey intends to drive awareness of approximately 500 projects