The proprietor of Toys “R” Us Canada is making efforts to acquire certain assets of the retailer to either continue operating the chain or introduce a new brand for the struggling business that has been under creditor protection since February.
A legal representative for a numbered company that holds ownership of the retailer has submitted a court letter stating that the company possesses a license to utilize the Toys “R” Us name until January 25, 2027. Beyond that date, the letter indicates that the numbered company, operating as Putman Investments, aims to renew the license or rebrand the business.
Although the specific new branding for the chain is not disclosed, Putman Investments, which also oversees Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, has provided the public with initial insights into its intentions for Toys “R” Us Canada.
Doug Putman, the owner of Putman Investments, has not made any public statements regarding the collapse of Toys “R” Us Canada. The company and its legal representatives have remained silent in response to inquiries from The Canadian Press regarding their strategies for the company’s assets.
As part of its strategy, Putman Investments has reached an agreement to continue operating its Sherway Gardens store in Toronto. 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 deal is subject to court approval, which the company is anticipated to seek on Monday. Additionally, during the hearing, a judge will evaluate whether Ad Populum, an American toy brand manager, can acquire the rights to approximately 150 Toys “R” Us Canada and Babies “R” Us Canada trademarks.
Toys “R” Us Canada is distinct from its U.S. counterpart, with separate ownership and operations. WHP Global holds the rights to Toys “R” Us and licenses them to various operators, including department stores like Macy’s and Kohl’s.
In 2021, Putman Investments acquired Toys “R” Us Canada from Fairfax Financial with intentions to overhaul the business. However, the company accumulated significant debt, leading to its resorting to court protection against creditors.
The retailer owes a minimum of $120 million to vendors and substantial sums to numerous landlords who have taken legal action in recent years to recover owed amounts. To address these financial obligations, Toys “R” Us Canada initiated the sale of its trademarks, inventory, leases, and equipment earlier this year.
The 10 locations that Putman Investments seeks to purchase through this process are situated in Ontario, Alberta, and Winnipeg. Additionally, Fox Group Jumbo Canada, an Israeli company introducing Jumbo discount stores in Canada, is seeking approval to acquire the Toys “R” Us store lease at Vaughan Mills, just north of Toronto, with a court decision expected on Monday.