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The owner of Toys “R” Us Canada is trying to buy some of the retailer’s assets so it can keep the chain going or rebrand the beleaguered business that has been in creditor protection since February.
A lawyer representing a numbered company that owns the retailer has filed a letter in court saying his client has a licence to use the Toys “R” Us name until Jan. 25, 2027.
After that date, the letter says the numbered company, which operates as Putman Investments, hopes to extend that licence or rebrand the business.
The letter does not say what the chain could be rebranded to. Putman Investments also runs Northern Reflections, HMV, Sunrise Records, Ricki’s and Cleo.
The letter offers the first insights the public has gotten into what Toys “R” Us Canada’s owner has planned for the crumbling chain that has shrunk from 53 to 15 stores within about two years.
The toy retailer is set to close its doors on Canadian operations, including stores in Saskatoon and Regina.
Putman Investments owner Doug Putman has never commented publicly on Toys “R” Us Canada’s collapse and the chain and his lawyers have not responded to questions from The Canadian Press about his plans for the company’s assets.
As part of the company’s plans, the letter says Putman Investments has struck an agreement to continue operating its store at Sherway Gardens, a mall in Toronto’s west end.
The location would bolster a deal it reached to buy 10 Toys “R” Us Canada store leases, the brand’s inventory, equipment and bank accounts.
The deal still needs court approval, which the company is expected to seek Monday.
At that hearing, a judge will also consider whether American toy brand manager Ad Populum will be able to buy the rights to about 150 Toys “R” Us Canada and Babies “R” Us Canada trademarks.
Toys “R” Us Canada and its U.S. counterpart are owned and operated separately, though WHP Global has the rights to Toys “R” Us and licenses them to U.S. and other regional operators like department stores Macy’s and Kohl’s.
Putman Investments bought Toys “R” Us Canada from Fairfax Financial in 2021 with plans to revamp the business.
Instead, it wound up so in debt it had to turn to the court to keep creditors at bay.
It owes at least $120 million to its vendors and “substantial” amounts to many landlords, who sued the company in the last few years in hopes of recouping owed amounts.
To help try to pay them back, Toys “R” Us Canada put its trademarks, inventory, leases and equipment up for sale earlier this year.
The 10 locations Putman Investments wants to buy as part of that process are in Ontario, Alberta and Winnipeg.
Fox Group Jumbo Canada, an Israeli company bringing Jumbo discount stores to the country, wants the Toys “R” Us store lease at Vaughan Mills, a mall just north of Toronto. A court is expected to decide whether to approve that sale also on Monday.
