TORONTO-With the majority of the chain slated to convert to Target stores in 2013, Zellers said it will close most of its remaining 64 stores next year.
According to a statement sent to HFN, the Canadian mass merchant has been reviewing its options for the remaining stores since last year’s completion of the acquisition agreement with Target to acquire 189 Zellers leaseholds. “After a lengthy review and numerous discussions with various parties, it became apparent that continuing to operate the Zellers banner in its current form was not viable, particularly given the geographic footprint of the remaining locations,” the statement said.
It went on to say that Zellers would not operate most of its remaining stores beyond March of next year. The statement did not give a specific number of store closings at that time. “Zellers is considering options for certain locations, including potentially rebranding some stores, which will result in certain stores remaining open for the foreseeable future,” the statement said. “This will be determined at a later date.”
Target purchased the leaseholds for about 220 Zellers locations in a deal that closed in September 2011. The U.S. mass merchant plans to open from 125 to 135 Target stores next year.