Target finally sold its credit card debt after more than two years of searching.
TD Bank bought the debt for about $5.9 billion, Kevin Orland at Bloomberg reported.
“The portfolio will be sold for an amount equal to the gross value of the outstanding receivables at the time of closing, Minneapolis-based Target said today in a statement. TD also agreed to a seven-year deal to underwrite, fund and own the retailer’s future credit card and Visa receivables in the U.S., the companies said.”
Target first put the debt on the market in January 2011, but no buyers signed on until now.
Like many retailers, Target has its own branded credit card. Employees are encouraged to sign customers up as a way to build loyalty with consumers and increase the odds they’ll shop there.
Now that Target has gotten rid of its credit card debt, it’s time to focus on beating Walmart and Amazon this holiday season.
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