The owner of Toys “R” Us Canada is making efforts to acquire certain assets of the retailer in order to either sustain the chain’s operations or introduce a new brand for 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 stating that the company possesses a license to utilize the Toys “R” Us name until January 25, 2027. Following this date, the document indicates that the numbered company, operating as Putman Investments, aims to extend the license or rebrand the enterprise.
The specifics of the potential rebranding are not disclosed in the letter. Putman Investments, the company in question, also oversees Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo. This disclosure provides the public with initial insights into the strategies planned by the owner of Toys “R” Us Canada to address the decline of the chain, which has seen a reduction from 53 to 15 stores in approximately two years.
Doug Putman, the owner of Putman Investments, has not publicly commented on the collapse of Toys “R” Us Canada, and neither the chain nor his legal representatives have responded to inquiries from The Canadian Press regarding their intentions for the company’s assets. As part of their proposed actions, the letter indicates that Putman Investments has reached an agreement to continue operating the store at Sherway Gardens, a shopping center in the west end of Toronto.
This arrangement would supplement a deal to acquire the leases of 10 Toys “R” Us Canada stores, along with the brand’s inventory, equipment, and financial accounts. The completion of this transaction is contingent on court approval, which the company plans to seek on Monday. Additionally, during the hearing, a judge will assess whether Ad Populum, an American toy brand manager, will be allowed to purchase the rights to approximately 150 trademarks associated with Toys “R” Us Canada and Babies “R” Us Canada.
While Toys “R” Us Canada and its U.S. counterpart operate independently, WHP Global holds the rights to Toys “R” Us and licenses them to various regional 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 revitalize the business, yet it eventually accumulated significant debt, prompting the need for court protection against creditors.
The company owes over $120 million to its suppliers and substantial sums to numerous landlords who have pursued legal action in recent years to recover outstanding debts. To facilitate repayment, Toys “R” Us Canada put its trademarks, inventory, leases, and equipment up for sale earlier this year. The ten locations that Putman Investments seeks to purchase as part of this process are situated in Ontario, Alberta, and Winnipeg.
Furthermore, Fox Group Jumbo Canada, an Israeli enterprise introducing Jumbo discount stores to Canada, is interested in acquiring the lease of the Toys “R” Us store at Vaughan Mills, a mall located just north of Toronto. A decision on approving this sale is expected to be made by the court on Monday.