On January 15, 2015, Target Canada Corporation (“Target Canada”) and certain of its subsidiaries and affiliates were granted protection from their creditors under the Companies’ Creditors Arrangement Act pursuant to an Order of the Honourable Justice Morawetz of the Ontario Superior Court of Justice (the “Initial Order”).
As part of the Initial Order, Koskie Minsky LLP has been appointed Representative Counsel to all Employees in the CCAA Proceedings, and Alvarez & Marsal Canada Inc. (the “Monitor”) was appointed Monitor. Target Canada will now be commencing an orderly wind down of its operations in Canada, and all of the approximately 17,500 Canadian Employees will be receiving notices of termination of their employment. The Monitor will assist in overseeing that process.
Koskie Minsky’s legal mandate is to represent all Employees’ interests in connection with all issues affecting them in the CCAA Proceedings, including the termination of employment and claims for termination pay and related entitlements. Target Canada’s American parent company – Target Corporation – has created a trust fund which will pay termination pay for all Employees of Target Canada, which will ensure that each Employee of Target Canada receives at least 16 weeks of working notice or termination pay (the “Employee Trust”).
