Target has begun a court-supervised wind-down of its Canadian businesses. The retailer currently operates 133 locations in the country.

The retailer launched in Canada a little under 2 years ago in March 2013. Target Canada stores will remain open during the liquidation process, which it estimates will take 16-20 weeks.

“When I joined Target, I promised our team and shareholders that I would take a hard look at our business and operations in an effort to improve our performance and transform our company," says Brian Cornell, chairman and chief executive officer, Target Corp. "After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021. Personally, this was a very difficult decision, but it was the right decision for our company. With the full support of Target Corporation’s Board of Directors, we have determined that it is in the best interest of our business and our shareholders to exit the Canadian market and focus on driving growth and building further momentum in our U.S. business.”

Early Thursday, Target Canada obtained an initial order from the Ontario Superior Court of Justice for creditor protection under the Companies' Creditors Arrangement Act. The order provides for a broad stay of proceedings against Target Canada and authorizes Target Corp. to provide a debtor-in-possession credit facility of $175 million to finance Target Canada’s operations during the wind down.

The Canadian court has also approved a $59 million employee trust to offset the lost wages and benefits of Target Canada’s 17,600 employees as the stores close. Eligible employees will stand to earn a minimum of 16 weeks of compensation during the wind-down period.

Aaron Alt, most recently Target Corp.’s senior vice president and treasurer, has been named chief executive officer of Target Canada to execute the wind-down process under the supervision of the monitor and the court.