Target has settled a dispute with RioCan Real Estate Investment Trust over leases left behind when the retailer exited Canada.
The deal covers 18 leases between Target and RioCan. Target originally leased 26 of its 130 Canadian locations from RioCan. Eight locations were snapped up by Canadian Tire and Target will now settle the remainder for $99 million.
RioCan was the largest landlord for Target and was particularly hit hard when the retailer abandoned efforts to expand there. The company also controlled leases for another Minneapolis-based retailer, Best Buy, when it closed 66 Future Shop locations in May.
Target entered Canada in 2011, opening up 133 stores in quick succession. The retailer never recovered from initial blunders, including moving too fast, fumbling its pricing strategy, and failing to solve cross-border supply chain issues that caused significant out-of-stocks.
Losses at Target Canada totaled roughly $1.6 billion, before the settlement with RioCan.
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