The owner of Toys “R” Us Canada is making efforts to acquire certain assets of the retailer in order to sustain the business or introduce a new brand following its financial struggles since February when it entered creditor protection.
A legal representative for a numbered company that holds the retailer mentioned in a court filing that they hold a license to utilize the Toys “R” Us name until Jan. 25, 2027. Post this date, the company, operating as Putman Investments, intends to extend the license or rebrand the enterprise.
While the specific rebranding plans are undisclosed, Putman Investments, which oversees Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, is at the helm of the transition. This development sheds light on the future of Toys “R” Us Canada, which has downsized from 53 to 15 stores in approximately two years.
Owner Doug Putman of Putman Investments has maintained silence on the collapse of Toys “R” Us Canada publicly. Moreover, the company and its legal representatives have refrained from responding to inquiries about the forthcoming strategies for the retailer.
As part of the restructuring strategy, Putman Investments has secured a deal to continue operating its outlet at Sherway Gardens in Toronto. This move complements the acquisition of 10 Toys “R” Us Canada store leases, along with the brand’s inventory, equipment, and financial accounts.
The proposed deal is subject to court approval, which the company aims to seek on Monday. The court session will also review the potential acquisition of about 150 trademarks related to Toys “R” Us Canada and Babies “R” Us Canada by American toy brand manager Ad Populum.
Toys “R” Us Canada operates independently from its U.S. counterpart, with WHP Global holding the rights to the brand and licensing them to various operators including department stores like Macy’s and Kohl’s.
Putman Investments acquired Toys “R” Us Canada from Fairfax Financial in 2021 with intentions to rejuvenate the business. However, the company faced financial distress, leading to the need for legal protection against creditors.
The retailer owes a minimum of $120 million to vendors and substantial amounts to numerous landlords, some of whom have pursued legal action in recent years to recover outstanding dues. In an effort to settle debts, Toys “R” Us Canada put up its trademarks, inventory, leases, and equipment for sale earlier this year.
The 10 locations in Ontario, Alberta, and Winnipeg that Putman Investments seeks to purchase are part of this initiative. Additionally, Fox Group Jumbo Canada, an Israeli company venturing into Jumbo discount stores in Canada, is interested in acquiring the Toys “R” Us store lease at Vaughan Mills, a mall situated north of Toronto. A court ruling on this potential sale is anticipated on Monday.