The owner of Toys “R” Us Canada is making efforts to acquire certain assets of the company to either sustain the chain’s operations or introduce a new brand following its struggles under creditor protection since February. A lawyer representing a numbered corporation that holds ownership of the retailer has submitted a court document indicating that the entity holds a license to utilize the Toys “R” Us name until Jan. 25, 2027. Post that date, the corporation, known as Putman Investments, aims to prolong the license or rebrand the business.
The specifics of the potential rebranding remain undisclosed in the letter. Putman Investments, which manages Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, has shed light on its intentions for the diminishing Toys “R” Us Canada chain, which has downsized from 53 to 15 stores in approximately two years.
Owner Doug Putman of Putman Investments has refrained from public statements regarding the collapse of Toys “R” Us Canada, and both the chain and its legal representatives have not addressed inquiries from The Canadian Press regarding their strategies for the company’s assets. As part of its plans, Putman Investments has secured an agreement to continue operating its store at Sherway Gardens in Toronto’s west end.
The establishment of this location will complement its acquisition of 10 Toys “R” Us Canada store leases, along with the brand’s inventory, equipment, and bank accounts. The transaction is subject to court approval, which the company is anticipated to request on Monday.
During the hearing, a judge will also review Ad Populum, an American toy brand manager’s bid to purchase the rights to approximately 150 Toys “R” Us Canada and Babies “R” Us Canada trademarks. It is worth noting that Toys “R” Us Canada operates independently from its U.S. counterpart, with WHP Global holding the rights to Toys “R” Us and licensing them to various regional operators, including Macy’s and Kohl’s department stores.
Putman Investments acquired Toys “R” Us Canada from Fairfax Financial in 2021 with intentions to rejuvenate the business, but financial challenges led to seeking court protection from creditors. The company owes at least $120 million to vendors and significant sums to numerous landlords who have pursued legal action in recent years to recover outstanding debts.
To address these financial obligations, Toys “R” Us Canada put its trademarks, inventory, leases, and equipment up for sale earlier this year. The 10 locations that Putman Investments is eyeing for acquisition are situated in Ontario, Alberta, and Winnipeg.
Fox Group Jumbo Canada, an Israeli company introducing Jumbo discount stores to Canada, is seeking approval from the court to purchase the Toys “R” Us store lease at Vaughan Mills, a mall located north of Toronto, with a decision expected to be made on Monday.