The owner of Toys “R” Us Canada is seeking to acquire certain assets of the retailer to either sustain the chain or transform 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 letter stating that the company possesses a license to use the Toys “R” Us name until January 25, 2027. Following this date, the company, operating as Putman Investments, aims to renew the license or rebrand the business.
Although the letter does not specify the potential rebranding of the chain, Putman Investments, which oversees Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, is considering future plans for the toy retailer.
This development provides insight into the intentions of Toys “R” Us Canada’s owner amid the chain’s decline from 53 to 15 stores in the past two years. Owner Doug Putman has refrained from public comments regarding the collapse of Toys “R” Us Canada, with no responses from the chain or its legal team to inquiries about their strategies for the company’s assets.
As per the company’s strategy, Putman Investments has secured an agreement to operate its store at Sherway Gardens in Toronto. This agreement complements the acquisition of 10 Toys “R” Us Canada store leases, inventory, equipment, and bank accounts. The deal is subject to court approval, which the company intends to seek on Monday.
During the court hearing, a decision will also be made regarding Ad Populum’s potential acquisition of approximately 150 Toys “R” Us Canada and Babies “R” Us Canada trademarks. Notably, Toys “R” Us Canada and its U.S. counterpart operate independently, while WHP Global holds the rights to Toys “R” Us, licensing them to various regional operators.
Putman Investments acquired Toys “R” Us Canada from Fairfax Financial in 2021 with the aim of revitalizing the business. However, the company faced significant debt, leading to the need for court intervention to manage creditors. The retailer owes over $120 million to vendors and substantial amounts to landlords.
To address its financial obligations, Toys “R” Us Canada put its trademarks, inventory, leases, and equipment up for sale earlier this year. The 10 sought-after locations by Putman Investments are based in Ontario, Alberta, and Winnipeg. Additionally, Fox Group Jumbo Canada is seeking approval to acquire the Toys “R” Us store lease at Vaughan Mills, with a court decision expected on Monday.
