An Ontario court has approved Toys “R” Us Canada’s plan to divide its business among three buyers, including its current owner who aims to continue operating the chain or rebrand it. Judge Jane Dietrich is set to finalize the agreements on Monday, allowing the struggling retailer to reduce its substantial debt accumulated before seeking creditor protection in February.
The first agreement involves selling the Toys “R” Us Canada and Babies “R” Us Canada names, logos, and 150 trademarks to Ad Populum, a U.S.-based company that also owns Party City and manages brands like Chia Pet and Graceland. Notable trademarks included in the deal are the Geoffrey the giraffe mascot, the Toys “R” Us Canada jingle, and phrases such as “wish book,” “gotta get it deals,” and “play more … spend less.”
The second deal will transfer 10 store leases, inventory, equipment, logistics contracts, and bank accounts to a numbered company led by Doug Putman, the current owner of Toys “R” Us Canada. Putman, who holds a license to use the Toys “R” Us name until 2027, is looking to extend the agreement or rebrand the business.
Lastly, the lease for a Toys “R” Us Canada store at Vaughan Mills will be sold to Fox Group Jumbo Canada, an Israeli retailer expanding its discount home-goods stores into Canada. Toys “R” Us Canada, currently preparing to vacate the location, has not disclosed the financial details of these transactions, although it owes significant amounts to vendors and landlords.
The retailer, which closed 53 Canadian stores in the past two years and now operates 15 stores with 260 employees, faces an uncertain future regarding its identity. Putman’s plans for the chain’s name remain undetermined, although he owns other brands like HMV, Sunrise Records, and Northern Reflections. Additionally, he previously managed home-goods store Rooms + Spaces and T. Kettle’s tea shops, both of which closed under his ownership. Putman also has ties to Everest Toys, a company founded by his father that faced receivership last year.
