TORONTO—In a move that could have considerable implications for Canadian retail real estate, Target Corporation, Minneapolis, plans to discontinue operating stores in Canada through its indirect wholly-owned subsidiary, Target Canada Co.

As a part of that process, on Thursday Target Canada filed an application for protection under the Companies' Creditors Arrangement Act (the “CCAA”) with the Ontario Superior Court of Justice in Toronto. Target Canada currently has 133 stores across the country. The big-box retailer often anchors or shadow-anchors small to midsized retail properties.

“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,” said Brian Cornell, Target Corporation Chairman and CEO in a press release. “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. 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.”