An Ontario court has granted permission to Toys “R” Us Canada to divide and sell the business to three buyers, one of which is the current owner looking to either continue operating the chain under its current brand or rebrand it. Judge Jane Dietrich is set to finalize the paperwork on Monday for the three agreements, allowing the struggling retailer to alleviate some of its substantial debt accumulated prior to seeking creditor protection in February.
The first agreement involves the sale of the rights to the Toys “R” Us Canada and Babies “R” Us Canada names, as well as 150 trademarks including the iconic Geoffrey the giraffe mascot, jingle, and phrases such as “wish book” and “gotta get it deals,” to Ad Populum, a U.S.-based company with interests in Party City, Chia Pet brand, and Graceland.
The second deal will transfer 10 store leases, inventory, equipment, logistics contracts, and financial assets to a numbered company led by Doug Putman, the current owner of Toys “R” Us Canada, who has a license to use the brand name until January 25, 2027, and is exploring the possibility of extending the agreement or rebranding the business.
Additionally, the final transaction will involve the sale of 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 to Canada. The toy retailer, which is in the process of closing several locations, has not disclosed the financial details of these transactions but is known to owe significant amounts to vendors and landlords.
Toys “R” Us Canada had closed 53 stores in Canada over a two-year period before filing for creditor protection, and it currently operates 15 stores with 260 employees. The future structure of the business remains uncertain, with potential changes depending on the outcomes of the finalized deals.
Ad Populum has not revealed its plans for utilizing the acquired trademarks, whether for operating stores or licensing the Toys “R” Us name to other retail businesses. In case Putman cannot extend the brand license, he has not disclosed potential alternative names for the chain. Putman, who also owns other retail brands like HMV, Sunrise Records, Northern Reflections, Ricki’s, and Cleo, had previously launched and closed home-goods stores and tea shops under different brands and was involved in the management of Everest Toys, which faced financial challenges and was placed under receivership last year.