The owner of Toys “R” Us Canada is making efforts to acquire some of the retailer’s assets to sustain the chain’s operations or introduce a new brand following the company’s financial struggles since February. A legal representative for a numbered company that holds ownership of the retailer has submitted a court document stating that the company possesses a license to utilize the Toys “R” Us name until January 25, 2027. Beyond that date, the company, known as Putman Investments, aims to either extend the license agreement or rebrand the business.
The specifics of the potential rebranding have not been disclosed in the document. Putman Investments, which operates Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, is the parent company. This development provides a glimpse into the future plans regarding the diminishing Toys “R” Us Canada chain, which has reduced its store count from 53 to 15 in approximately two years.
Owner Doug Putman, who has not publicly addressed the collapse of Toys “R” Us Canada, along with the chain and their legal representatives, have refrained from responding to inquiries concerning the company’s strategies for its assets. As part of its strategy, Putman Investments has finalized an agreement to continue running its store at Sherway Gardens in Toronto. This move complements the deal to acquire 10 Toys “R” Us Canada store leases, along with the brand’s inventory, equipment, and bank accounts.
The pending deal necessitates court approval, which the company intends to request on Monday. During the court proceedings, a decision will also be made regarding whether Ad Populum, an American toy brand manager, will be allowed to acquire approximately 150 trademarks of Toys “R” Us Canada and Babies “R” Us Canada.
Toys “R” Us Canada operates independently from its U.S. counterpart, with WHP Global holding the rights to Toys “R” Us and granting licenses to U.S. and other regional operators such as Macy’s and Kohl’s. Putman Investments acquired Toys “R” Us Canada from Fairfax Financial in 2021 with intentions to rejuvenate the business. However, the company amassed significant debts, prompting it to seek creditor protection through the court.
The company owes over $120 million to suppliers and substantial amounts to numerous landlords, some of whom have pursued legal action in recent years to recover outstanding payments. In an effort to repay these debts, Toys “R” Us Canada put its trademarks, inventory, leases, and equipment up for sale earlier this year.
The 10 locations targeted for acquisition by Putman Investments are situated in Ontario, Alberta, and Winnipeg. Additionally, Fox Group Jumbo Canada, an Israeli company introducing Jumbo discount stores to Canada, is seeking approval to purchase the Toys “R” Us store lease at Vaughan Mills, a mall located north of Toronto. The court is expected to rule on this transaction on Monday.