The owner of Toys “R” Us Canada is in the process of acquiring certain assets to either sustain the chain or introduce a new brand for the struggling business under creditor protection since February.
An attorney representing a numbered company holding the retailer’s ownership has submitted a court document stating that the company possesses a license to utilize the Toys “R” Us name until Jan. 25, 2027. Following this date, the company, operating as Putman Investments, aims to extend the license or rebrand the business.
While the specifics of the potential rebranding remain undisclosed, Putman Investments, which manages Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, revealed its intentions for the future of Toys “R” Us Canada.
The owner of Putman Investments, Doug Putman, has refrained from public commentary on the collapse of Toys “R” Us Canada. His legal team has not responded to inquiries regarding the company’s asset strategies.
As part of its outlined strategy, Putman Investments has secured an agreement to continue operating its store at Sherway Gardens, a mall situated in Toronto’s west end. This move complements the deal to acquire 10 Toys “R” Us Canada store leases, along with the brand’s inventory, equipment, and bank accounts.
The proposed transaction is subject to court approval, which the company intends to seek on Monday. Additionally, a judge will review Ad Populum’s bid to acquire approximately 150 Toys “R” Us Canada and Babies “R” Us Canada trademarks during the same hearing.
Toys “R” Us Canada operates independently from its U.S. counterpart, although 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, leading to the current financial challenges and creditor protection status.
The company faces debts exceeding $120 million to vendors and substantial amounts to numerous landlords who pursued legal action in recent years to recover outstanding sums. In an effort to repay these debts, Toys “R” Us Canada put its trademarks, inventory, leases, and equipment up for sale earlier this year.
The proposed acquisition of the 10 locations by Putman Investments spans Ontario, Alberta, and Winnipeg. Meanwhile, Fox Group Jumbo Canada, an Israeli firm introducing Jumbo discount stores to Canada, seeks approval to acquire the Toys “R” Us store lease at Vaughan Mills, located just north of Toronto.
The court is expected to make a decision on these transactions on Monday.