An Ontario court has granted Toys “R” Us Canada approval to divide and sell the business to three buyers, which includes its current owner looking to continue operating the chain or rebranding it.
Judge Jane Dietrich confirmed that she would authorize the three transactions on Monday, aiding the struggling retailer in reducing a portion of its substantial debt accumulated before seeking creditor protection in February.
The first agreement involves transferring the rights to the Toys “R” Us Canada and Babies “R” Us Canada names and logos, along with 150 trademarks, to Ad Populum. Ad Populum, a U.S.-based company and its affiliates, are known for owning Party City and managing brands like the Chia Pet and Graceland.
Included in the trademarks are rights to the Geoffrey the giraffe mascot, the Toys “R” Us Canada jingle, and phrases such as “wish book,” “gotta get it deals,” and “play more … spend less.”
The second deal will involve the transfer of 10 store leases, the brand’s inventory, equipment, logistics contracts, and bank accounts to a numbered company led by the current owner of Toys “R” Us Canada, Doug Putman. Putman’s legal team has stated in court documents that he holds a license to use the Toys “R” Us name until Jan. 25, 2027, and aims to either extend this agreement or rebrand the business.
Lastly, the lease for a Toys “R” Us Canada store at Vaughan Mills, situated near Toronto, will be sold to Fox Group Jumbo Canada, an Israeli retailer expanding its discount home-goods stores to Canada.
Toys “R” Us Canada is making preparations to leave the Vaughan Mills location as evident by signs on the store windows indicating an imminent closure. While the exact financial details of the transactions remain undisclosed, the retailer owes a minimum of $120 million to vendors and substantial amounts to landlords.
Before seeking creditor protection, Toys “R” Us Canada closed 53 stores across the country within a two-year period. Currently, the retailer has further shut down additional locations and operates only 15 stores with 260 employees. The future form of Toys “R” Us Canada remains uncertain.
Ad Populum has not disclosed its plans regarding the use of the trademarks, whether for operating stores or licensing the Toys “R” Us name to other companies interested in retail operations or manufacturing merchandise.
In the event that Putman cannot 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 introduced home-goods stores under the brand Rooms + Spaces and managed T. Kettle’s tea shops, both of which closed all their outlets following his ownership. He also held an executive position at Everest Toys, a company founded by his father, which was forced into receivership by TD Bank last year due to a $25 million debt.
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