The entity owning Toys “R” Us Canada is making efforts to acquire certain assets of the retailer to sustain the brand or potentially restructure the struggling business that has been under creditor protection since February. A legal representative for a numbered company owning the retailer has submitted a court letter indicating their authorization to utilize the Toys “R” Us name until January 25, 2027. Following this period, the company, operating as Putman Investments, aims to either prolong the license agreement or introduce a new branding strategy.
Although the specifics of the potential rebranding are undisclosed, Putman Investments, which oversees the operations of Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, is contemplating the future direction of Toys “R” Us Canada. This insight offers a glimpse into the plans of the current owner as the chain has significantly reduced its store count from 53 to 15 over the past two years.
Despite the public anticipation, Doug Putman, the owner of Putman Investments, has maintained silence regarding the collapse of Toys “R” Us Canada. The company has also refrained from responding to inquiries from The Canadian Press regarding its strategies for the retailer’s assets. As part of its intended actions, Putman Investments has secured an agreement to continue operating its Sherway Gardens store in Toronto, in addition to finalizing a deal to acquire 10 store leases, inventory, equipment, and bank accounts of Toys “R” Us Canada.
The proposed transaction is subject to court approval, which the company is expected to pursue imminently. The upcoming hearing will also assess the potential acquisition of approximately 150 Toys “R” Us Canada and Babies “R” Us Canada trademarks by American toy brand manager Ad Populum. Notably, Toys “R” Us Canada operates independently from its U.S. counterpart, with WHP Global holding the rights to the brand and licensing agreements with various regional operators.
Putman Investments acquired Toys “R” Us Canada from Fairfax Financial in 2021 with intentions to reinvigorate the business, but financial challenges led to the company seeking creditor protection. With debts exceeding $120 million owed to vendors and substantial amounts to landlords, the retailer opted to offer its trademarks, inventory, leases, and equipment for sale earlier this year.
The 10 store locations targeted for acquisition by Putman Investments are situated in Ontario, Alberta, and Winnipeg. Additionally, Fox Group Jumbo Canada, an Israeli firm introducing Jumbo discount stores in the country, is seeking approval to acquire the lease of the Toys “R” Us store at Vaughan Mills mall near Toronto. The court is poised to make a decision on this sale on Monday.
