An Ontario court has approved Toys “R” Us Canada’s decision to divide its business among three buyers, including its current owner, who aims to continue running the chain or rebrand it. Judge Jane Dietrich is set to finalize the agreements on Monday, helping the struggling retailer reduce its significant debt incurred before seeking creditor protection in February.
The first agreement involves selling the rights to the Toys “R” Us Canada and Babies “R” Us Canada names, logos, and 150 trademarks to Ad Populum. Ad Populum, based in the U.S., also owns Party City and manages Chia Pet and Graceland. The trademarks include the rights to the Geoffrey the giraffe mascot and various phrases associated with the brands.
The second deal will transfer ten store leases, inventory, equipment, logistics contracts, and bank accounts to a numbered company controlled by the current owner, Doug Putman. Putman’s legal team indicated that he holds a license to use the Toys “R” Us name until January 25, 2027, with plans to extend the agreement or rebrand the business.
Additionally, the final transaction will involve selling the lease for a Toys “R” Us Canada store at Vaughan Mills to Fox Group Jumbo Canada, an Israeli retailer expanding its discount home-goods stores into Canada. Toys “R” Us Canada is preparing to vacate the location, signaling the forthcoming closure through signs on the store windows.
The total value of the transactions remains undisclosed, but the retailer owes substantial amounts to vendors and landlords, with debts exceeding $120 million. Before the creditor protection filing, Toys “R” Us Canada closed 53 stores in Canada within two years, leading to further closures and downsizing to 15 stores and 260 employees. The future direction of Toys “R” Us Canada remains uncertain.
Ad Populum has not disclosed plans regarding the use of the acquired trademarks, leaving open the possibility of operating stores or licensing the Toys “R” Us name to other retailers. In the event Putman cannot extend his license, he has not revealed potential new names for the chain. Putman’s business portfolio includes HMV, Sunrise Records, Northern Reflections, Ricki’s, and Cleo, with past ventures such as Rooms + Spaces and T. Kettle’s tea shops closing operations after his ownership. Additionally, Putman has ties to Everest Toys, a company founded by his father that faced receivership last year due to outstanding debts to TD Bank.