Target closure could cost Jumping Bean more than $50K
The impending closure of Target stores is hurting some suppliers in Newfoundland and Labrador, including a local coffee business.
The retailer had been operating in Canada since March 2013, but lost almost $1-billion in just one year of operation.
There were two stores operating in the province when Target announced its closure, and they owed at least a dozen businesses in this province a lot of money.
One business that will suffer losses as a result of the closure is Jumping Bean Coffee, a local coffee roaster, retailer and wholesaler that operates out of the province.
Owner Jeff LeDrew worries that Jumping Bean may lose more than $50,000 as a result of the closure.
"It's a big hit," he said.
"I mean obviously that's tied up in inventory and some profit in there as well. So I mean, you can kind of rationalize it in your mind what it's really valued at, but it's a big loss. It's a huge loss."
Stunted growth
LeDrew said the company is in good enough financial shape to absorb the loss, however he feels it does slow down the expansion they were just starting to experience.
He said getting Target to carry his coffee gave Jumping Bean national exposure, and now that's lost.
"For us to get into Target and have that opportunity was a way for us to build our brand."
The company has seen a fair level of success in Newfoundland and Labrador, but the recent partnership with the large American retailer was its first opportunity to branch out into other provinces.
"It's unfortunate that it didn't carry on longer, because we just started getting a foothold right across the country," said LeDrew.
"We had a good base-building and we were doing a lot of social media in order to build our brand. Unfortunately that's full stop from there."
LeDrew said Jumping Bean will survive, but he said it will be difficult to find another retail partner with a similar national reach.
With files from Mark Quinn