An Ontario court has granted Toys “R” Us Canada permission to divide and sell the business to three purchasers, one of whom is the current owner looking to continue operating the chain or rebranding it.
Judge Jane Dietrich is set to finalize the three transactions on Monday to assist the struggling retailer in reducing a portion of its pre-creditor protection debt. The first agreement involves the sale of the Toys “R” Us Canada and Babies “R” Us Canada names, logos, and 150 trademarks to Ad Populum, a U.S.-based entity with ties to Party City, Chia Pet, and Graceland.
Included in the trademarks are rights to the Geoffrey the giraffe mascot, the Toys “R” Us Canada jingle, and phrases like “wish book,” “gotta get it deals,” and “play more … spend less.” The second deal will transfer 10 store leases, inventory, equipment, logistics contracts, and bank accounts to a numbered company managed by the current owner, Doug Putman.
Putman’s legal representatives mentioned that he holds a license to use the Toys “R” Us name until Jan. 25, 2027, and aims to prolong this agreement or introduce a new brand. The final transaction will involve selling the lease for a Toys “R” Us Canada store at Vaughan Mills to Fox Group Jumbo Canada, an Israeli retailer expanding its discount home-goods stores to Canada.
Toys “R” Us Canada is making preparations to vacate the Vaughan Mills location, with closure notices already displayed. While the exact financial details of the transactions remain undisclosed, the retailer owes at least $120 million to vendors and significant amounts to landlords.
Prior to seeking creditor protection, Toys “R” Us Canada closed 53 stores in Canada over two years. It has since shut down more locations and currently operates only 15 stores with 260 employees. The future form of Toys “R” Us Canada is yet to be determined.
Ad Populum has not revealed its plans for utilizing the trademarks, whether to operate stores or license the Toys “R” Us name to other entities interested in retail or manufacturing. In the event that Putman cannot extend his license, there is no mention of the potential new name for the chain. Putman’s ownership extends to HMV, Sunrise Records, Northern Reflections, Ricki’s, and Cleo.
Previously, Putman introduced the Rooms + Spaces home-goods stores and acquired T. Kettle’s tea shops, both of which have ceased operations. He has also held an executive position at Everest Toys, a company founded by his father and placed under receivership by TD Bank last year, owing $25 million as per court documents.
