The owner of Toys “R” Us Canada is making efforts to acquire some of the retailer’s assets with the aim of either sustaining the chain’s operations or introducing a new brand for the struggling business, which has been under creditor protection since February.
Legal representation for a numbered company that possesses the retailer has submitted a court letter stating that the company holds a license to operate under the Toys “R” Us name until Jan. 25, 2027. Following this date, the company, operating as Putman Investments, intends to extend the license or rebrand the business.
While the specific new branding for the chain is not disclosed in the letter, Putman Investments, which also manages Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, is considering various options.
This development marks the first public glimpse into the plans of Toys “R” Us Canada’s owner for the diminishing chain, which has seen a reduction in stores from 53 to 15 over the past two years.
Despite no public comments from Putman Investments owner Doug Putman on the collapse of Toys “R” Us Canada, the company has sealed an agreement to continue operating its store at Sherway Gardens in Toronto. Additionally, the company has finalized a deal to acquire 10 Toys “R” Us Canada store leases, along with the brand’s inventory, equipment, and bank accounts.
The proposed acquisition is subject to court approval, which the company intends to seek on Monday. A court hearing will also address the potential purchase of approximately 150 Toys “R” Us Canada and Babies “R” Us Canada trademarks by American toy brand manager Ad Populum.
Toys “R” Us Canada and its U.S. counterpart are independently owned and operated, with WHP Global holding the rights to Toys “R” Us and licensing them to various regional operators. Putman Investments took over Toys “R” Us Canada from Fairfax Financial in 2021, aiming to revitalize the business, but financial difficulties led to seeking protection from creditors.
With debts exceeding $120 million to vendors and substantial amounts owed to multiple landlords, Toys “R” Us Canada placed its trademarks, inventory, leases, and equipment for sale earlier this year to help settle outstanding debts.
Putman Investments is eyeing the purchase of 10 locations in Ontario, Alberta, and Winnipeg as part of this process. Additionally, Fox Group Jumbo Canada is seeking approval to acquire the Toys “R” Us store lease at Vaughan Mills from a court decision expected on Monday.