The owner of Toys “R” Us Canada is making efforts to acquire certain assets of the retail chain in order to sustain its operations or potentially introduce a new brand following the company’s entrance into creditor protection in February.
A legal representative for a numbered corporation that holds ownership of Toys “R” Us has submitted a court letter stating that their client holds a license for the Toys “R” Us name until January 25, 2027. Beyond this date, the corporation, known as Putman Investments, aims to renew the license or rebrand the business.
Although the specifics of the rebranding remain undisclosed, Putman Investments, which also oversees Northern Reflections, HMV, Sunrise Records, Ricki’s, and Cleo, is contemplating the future direction of Toys “R” Us Canada.
Owner Doug Putman has refrained from public comments regarding the collapse of Toys “R” Us Canada, with no responses provided by his legal team to inquiries about the company’s future strategies. As part of their plans, Putman Investments has secured an arrangement to continue operating the Sherway Gardens store in Toronto.
Additionally, the corporation has reached an agreement to acquire 10 Toys “R” Us Canada store leases, along with the brand’s inventory, equipment, and financial accounts. The proposed deal is subject to court approval, anticipated to be sought on Monday.
During the court hearing, a decision will be made on 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. It is noted that Toys “R” Us Canada operates independently from its U.S. counterpart, with WHP Global holding the rights to the Toys “R” Us brand.
Putman Investments acquired Toys “R” Us Canada from Fairfax Financial in 2021 with intentions to revitalize the business, but financial challenges led to the need for court protection from creditors. The company faces significant debts to vendors and landlords, prompting the sale of trademarks, inventory, leases, and equipment earlier this year.
The 10 store locations sought for acquisition by Putman Investments are situated in Ontario, Alberta, and Winnipeg. Furthermore, Fox Group Jumbo Canada is seeking approval to acquire the Toys “R” Us store lease at Vaughan Mills, with a court decision expected on Monday.
