The owner of Toys “R” Us Canada is making efforts to acquire some of the retailer’s assets to either sustain the chain or introduce a new brand for the struggling business operating under creditor protection since February. A legal representative of a numbered company that possesses the retailer has submitted a court document stating that the company holds a license to utilize the Toys “R” Us name until January 25, 2027. Following this expiration, the company, known as Putman Investments, intends to extend the license or rebrand the business.
While the specifics of the potential rebranding remain undisclosed, Putman Investments, which also manages Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, is exploring options for the future of Toys “R” Us Canada. This insight provides the public with the first glimpse into the owner’s strategies for the dwindling chain, which has downsized from 53 to 15 stores over the past two years.
Putman Investments’ owner, Doug Putman, has refrained from public comments on Toys “R” Us Canada’s collapse, and both he and his legal team have not addressed inquiries regarding the company’s prospects. As part of their plans, Putman Investments has secured an agreement to continue operating the Sherway Gardens store in Toronto. Additionally, they have finalized a deal to purchase 10 Toys “R” Us Canada store leases, along with the brand’s inventory, equipment, and bank accounts.
The transaction is pending court approval, which the company is anticipated to pursue on Monday. During the hearing, a judge will also evaluate whether American toy brand manager Ad Populum can acquire the rights to approximately 150 Toys “R” Us Canada and Babies “R” Us Canada trademarks. It is noteworthy that Toys “R” Us Canada and its U.S. counterpart are separate entities, with WHP Global holding the rights to Toys “R” Us and licensing them to various regional operators.
Putman Investments acquired Toys “R” Us Canada from Fairfax Financial in 2021 with intentions to rejuvenate the business, but financial challenges led to seeking court protection from creditors. The company owes over $120 million to vendors and substantial amounts to numerous landlords who have pursued legal action in recent years to recover their dues. To address these debts, Toys “R” Us Canada has put its trademarks, inventory, leases, and equipment up for sale this year.
The 10 locations that Putman Investments seeks to purchase are situated in Ontario, Alberta, and Winnipeg. Furthermore, Fox Group Jumbo Canada, an Israeli enterprise introducing Jumbo discount stores in Canada, aims to acquire the Toys “R” Us store lease at Vaughan Mills, a mall north of Toronto. A court decision on this sale is also expected on Monday.