The company that owns Toys “R” Us Canada is making efforts to acquire certain assets of the retailer to either sustain the chain’s operations or introduce a new brand to 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 document indicating that the company possesses a license to utilize the Toys “R” Us name until January 25, 2027.
Upon the expiration of this license, the company, operating under the name Putman Investments, aims to extend the license or rebrand the business. The specifics of the potential rebranding are not disclosed in the document. Putman Investments also manages Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo.
This communication provides the public with initial insights into the intentions of Toys “R” Us Canada’s owner regarding the dwindling chain, which has reduced its store count from 53 to 15 over a two-year period. Doug Putman, the owner of Putman Investments, has remained silent on the collapse of Toys “R” Us Canada, and neither he nor his legal team have responded to inquiries regarding their plans for the company’s assets.
As part of its strategy, Putman Investments has secured an agreement to continue operating its store at Sherway Gardens in Toronto. This move complements a deal to purchase 10 Toys “R” Us Canada store leases, along with the brand’s inventory, equipment, and bank accounts. The company is anticipated to seek court approval for this transaction on Monday.
During the court hearing, a decision will be made on whether Ad Populum, an American toy brand manager, can acquire the rights to around 150 Toys “R” Us Canada and Babies “R” Us Canada trademarks. Notably, Toys “R” Us Canada and its U.S. counterpart operate independently, with WHP Global holding the rights to Toys “R” Us and granting licenses to U.S. and other regional operators, including department stores like Macy’s and Kohl’s.
In 2021, Putman Investments purchased Toys “R” Us Canada from Fairfax Financial with the intention of revitalizing the business. However, the company accumulated significant debt, prompting it to seek court protection against creditors. It owes at least $120 million to vendors and substantial amounts to numerous landlords, some of whom have sued the company in recent years to recover outstanding sums.
To address these financial challenges, Toys “R” Us Canada put its trademarks, inventory, leases, and equipment up for sale earlier this year. The 10 locations that Putman Investments seeks to acquire are situated in Ontario, Alberta, and Winnipeg. Additionally, Fox Group Jumbo Canada, an Israeli company introducing Jumbo discount stores to Canada, is interested in acquiring the Toys “R” Us store lease at Vaughan Mills, a mall located north of Toronto. A court decision on this potential sale is also anticipated on Monday.
