The owner of Toys “R” Us Canada is seeking to acquire certain assets of the retailer in an effort to sustain the chain’s operations or potentially rebrand the struggling business, which has been under creditor protection since February. A legal representative for a numbered company that holds ownership of the retailer has submitted a court filing indicating that the company holds a license to utilize the Toys “R” Us name until January 25, 2027. Post this date, the company, known as Putman Investments, aims to either extend the license agreement or rebrand the business.
While the specific rebranding plans are undisclosed in the letter, Putman Investments, which also manages Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, has hinted at potential transformations for the toy chain. This insight marks the first glimpse into the strategies envisioned by the owner of Toys “R” Us Canada as the chain has seen a considerable reduction in stores from 53 to 15 over the past two years.
Owner Doug Putman has not publicly addressed the collapse of Toys “R” Us Canada, and neither the chain nor his legal team has responded to inquiries about the company’s future endeavors. As part of Putman Investments’ proposed initiatives, an agreement has been reached to continue operating the Sherway Gardens store in Toronto, further solidifying a deal to acquire 10 Toys “R” Us Canada store leases, inventory, equipment, and bank accounts.
The transaction is subject to court approval, anticipated to be sought on Monday. Additionally, the court will deliberate on whether American toy brand manager Ad Populum can secure the rights to around 150 Toys “R” Us Canada and Babies “R” Us Canada trademarks during the hearing.
Toys “R” Us Canada and its U.S. counterpart are independently owned and operated, with WHP Global holding the rights to Toys “R” Us and licensing them to various regional operators such as Macy’s and Kohl’s. Putman Investments acquired Toys “R” Us Canada from Fairfax Financial in 2021 with intentions to revitalize the business, but the company found itself deeply indebted, necessitating court intervention to manage creditors.
The company owes over $120 million to vendors and substantial amounts to multiple landlords who have pursued legal action in recent years to recover outstanding sums. In an effort to settle these obligations, Toys “R” Us Canada put its trademarks, inventory, leases, and equipment up for sale earlier this year.
The 10 locations that Putman Investments aims to purchase through this process 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 acquire the Toys “R” Us store lease at Vaughan Mills mall near Toronto, with a court decision on this sale also expected on Monday.
