An Ontario court has granted permission to Toys “R” Us Canada to divide and sell its business to three purchasers, including the current owner who aims to continue operating the chain or rebrand it.
Judge Jane Dietrich announced her approval of the three agreements on Monday, facilitating the troubled retailer in reducing a portion of its substantial debt amassed before seeking creditor protection in February.
The initial transaction involves selling the rights to the Toys “R” Us Canada and Babies “R” Us Canada names and logos, along with 150 trademarks, to Ad Populum, a U.S.-based company that also owns Party City and oversees the entities behind the Chia Pet brand and Graceland. Noteworthy trademarks include those for Geoffrey the giraffe mascot, the Toys “R” Us Canada jingle, and phrases like “wish book” and “play more … spend less.”
Subsequently, a numbered company managed by current Toys “R” Us Canada owner Doug Putman is set to acquire 10 store leases, the brand’s inventory, equipment, logistics contracts, and financial assets. Putman, as per court documents, possesses a license to use the Toys “R” Us name until January 25, 2027, aiming to extend this agreement or opt for a rebrand.
The final deal will see the lease for a Toys “R” Us Canada store at Vaughan Mills, located near Toronto, sold to Fox Group Jumbo Canada, an Israeli retailer expanding its discount home-goods stores into Canada. Toys “R” Us Canada is already in the process of vacating this location, with store windows displaying closure notices.
While the specific financial details of the transactions remain undisclosed, the retailer is known to owe over $120 million to vendors and significant amounts to landlords. Prior to entering creditor protection, Toys “R” Us Canada had closed 53 stores in Canada over a two-year span and has since shuttered additional locations, leaving it with 15 stores and 260 employees. The future form of Toys “R” Us Canada remains uncertain.
Ad Populum has not disclosed plans regarding the use of the trademarks, whether for operating stores or licensing the Toys “R” Us name to other entities interested in retail or merchandise production. Should Putman fail to extend his Toys “R” Us license, he has not revealed potential new names for the chain. Putman’s ownership portfolio includes HMV, Sunrise Records, Northern Reflections, Ricki’s, and Cleo.
Previously, Putman launched home-goods stores under the Rooms + Spaces brand and acquired T. Kettle’s tea shops, both of which closed after his ownership. Additionally, he held an executive position at Everest Toys, a company founded by his father and placed into receivership by TD Bank last year due to a $25 million debt, as per court documents.