The current owner of Toys “R” Us Canada is making efforts to acquire certain assets of the retailer to either sustain the chain’s operations or introduce a new brand due to the business facing financial challenges since February. Legal representation for a numbered company that possesses the retailer has submitted a court document indicating that the company holds a license to utilize the Toys “R” Us name until January 25, 2027. Following this date, the company, known as Putman Investments, aims to extend the license or rebrand the business.
Although the specifics of a potential rebranding have not been disclosed, Putman Investments, which also manages Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, has hinted at future plans for the struggling Toys “R” Us Canada chain. This insight into the owner’s strategies marks the first public disclosure regarding the company’s direction as it has reduced its store count from 53 to 15 in the past couple of years.
Owner Doug Putman has maintained silence on the collapse of Toys “R” Us Canada, with no comments made public about the chain’s future. The company’s legal document reveals that Putman Investments has secured an agreement to continue operating its store at Sherway Gardens in Toronto. This agreement complements the purchase of 10 Toys “R” Us Canada store leases, along with the brand’s inventory, equipment, and financial accounts.
Pending court approval, which the company plans to request imminently, the deal is expected to progress smoothly. Additionally, at the upcoming hearing, a judge will review a proposal from American toy brand manager Ad Populum seeking to acquire approximately 150 trademarks associated with Toys “R” Us Canada and Babies “R” Us Canada.
While Toys “R” Us Canada operates independently from its American counterpart, which is managed by WHP Global and licensed to various operators including Macy’s and Kohl’s, Putman Investments acquired the Canadian entity from Fairfax Financial in 2021 with intentions to rejuvenate the business. However, financial difficulties led to the company seeking creditor protection, owing significant amounts to vendors and landlords who have pursued legal action in recent years to recover debts.
To address these financial obligations, Toys “R” Us Canada initiated the sale of its trademarks, inventory, leases, and equipment earlier this year. Putman Investments has expressed interest in acquiring 10 locations in Ontario, Alberta, and Winnipeg as part of this process. Additionally, Fox Group Jumbo Canada, an Israeli company expanding Jumbo discount stores in Canada, is seeking approval to acquire the lease for the Toys “R” Us store at Vaughan Mills near Toronto, with a court decision anticipated on this matter also scheduled for Monday.
