Target Canada reaches deal with landlords to sell store leases

Target Canada has reached an agreement with its landlords on the sale of leases for the closing of Target retail stores.

Documents filed with an Ontario court say both sides have agreed to a court-appointed monitor to supervise the sale, which shifts control away from Target Canada.

The retailer has also set May 15 as the deadline for wrapping up the sale of the leases, with an final date set for June 30. If a lease isn't sold by the June deadline, then the rights will be returned to the landlord, according to the documents.

The move addresses concerns from landlords that delays could leave unoccupied properties in limbo, as well as Target Corp.'s goal of getting out of Canada around mid-May.

Lawyers for both the landlords and Target Canada have been discussions since last week on how the real estate sale would proceed.

Target Canada is in the midst of liquidating 133 stores across the country, as the U.S.-based retailer exits Canada and lays off more than 17,000 staff.