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Toys "R" Us Canada

Toys "R" Us (Canada) Ltd. is a Canadian chain of toy stores. It was founded by the Canadian franchise of U.S. toy retail chain Toys "R" Us in 1984. Since 2018, it has operated independently and is based in Concord, Ontario, serving locations throughout Canada.

By March 2026, the chain was reduced to a network of 18 stores from a peak of 81, applied for protection under the Companies' Creditors Arrangement Act (CCAA). The chain is in serious trouble with creditors (such as landlords and suppliers), with both online sales and use of existing gift cards for purchases suspended.

In April 2026, the chain was given permission to locate investors to help save the business, or buyers for its assets by June.[2]

History

In September 2017, Toys "R" Us filed for Chapter 11 bankruptcy protection, and closed all U.S. locations in June 2018.[3] Toys "R" Us pursued a sale of the Canadian division, including the possibility of bundling them with top-performing U.S. stores. The Canadian unit had annual sales of $1.08 billion at the time of the filing, and had to file for protection from its creditors due to the default of its U.S.-based businesses.[4]

In April 2018, it was announced that Fairfax Financial would acquire the 82 Toys "R" Us locations in Canada for $300 million, with the stores continuing to use the Toys "R" Us name.[5][6] A couple of months later, the first Canadian store to close was in Richmond Hill, Ontario. In 2021, Sunrise Records owner Doug Putman, through his Putman Investments, announced he would buy Toys "R" Us Canada (which now comprised 81 locations) from Fairfax Financial.[7]

In January 2024, the chain announced that it would revive the HMV brand in Canada (which Putman had acquired via Sunrise in 2019)[8] as a store-within-a-store concept at Toys "R" Us Canada locations, stocking music, home video, and memorabilia such as books and clothing. The departments began to launch at selected locations in the Greater Toronto Area, and were expected to be deployed at other locations throughout the year.[9] Later in 2024, large quantities of overstock from the failed Rooms + Spaces chain was moved into Toys "R" Us Canada stores.[10]

In October 2025, the chain announced it had suffered a major data breach.[11]

Creditor lawsuits and mass store closures

On February 3, 2026, Toys "R" Us Canada filed for creditor protection.[12] All Toys "R" Us stores will remain open during this process. Toronto court records show several parties, including landlords and suppliers, have filed more than 20 lawsuits seeking $31.8 million (CAD) against the Canadian chain of toy stores over property, mortgage, contract and debt disagreements in the past two years. The claims have not been tested in court. Toys "R" Us currently owes at least $120 million to its vendors[12] and $31.3 million in unpaid rent and other damages to landlords.[13] Only 18 Canadian stores remain open - 10 in Ontario, 2 in Saskatchewan, 2 in Manitoba, 3 in Alberta and 1 in Quebec. [14] All of the Toys "R" Us locations within British Columbia have shut down with the chain’s last outlet at the Willowbrook Shopping Centre located in the Vancouver suburb of Langley closing its doors on January 15, 2026. [15]

In March 2026, it was announced that the chain is seeking permission from the court to be put up for sale.[16]

External links

References

  1. Toys ‘R’ Us Canada gets extended creditor reprieve as it eyes further closures^
  2. The Canadian Press. Toys ‘R’ Us Canada gets court permission to put itself up for sale, solicit investors CTVNews, 2026-04-01, retrieved 2026-04-01^
  3. Abha Bhattarai. Toys R Us to close all 800 of its U.S. stores The Washington Post, March 14, 2018, retrieved March 14, 2018^
  4. 'Multiple' suitors line up with offers for Toys 'R' Us Canada financialpost, retrieved 2022-11-30^
  5. Anthony Reyes. No need to grow up, you can still be a "Toys 'R' Us Kid" in Canada WKBW, June 29, 2018, retrieved July 12, 2018^
  6. Fairfax agrees $300 million deal to keep Toys 'R' Us Canada open financialpost, retrieved 2022-11-30^
  7. Mario Toneguzzi. Toys R Us Canada Sold to Sunrise Records Owner: Interview with Doug Putman Retail Insider, 2021-08-19, retrieved 2022-11-30^
  8. Angela Monaghan, Sarah Butler. HMV reveals which 27 stores have closed after sale to Canadian music boss The Guardian, 5 February 2019, retrieved 5 February 2019^
  9. HMV making comeback through Toys 'R' Us locations CTVNews, 2024-02-01, retrieved 2024-02-01^
  10. After quietly closing stores, Rooms + Spaces merchandise creeps into Toys ‘R’ Us locations The Globe and Mail, 2024-06-28, retrieved 2026-03-28^
  11. Vlad CONSTANTINESCU. Toys “R” Us Canada Confirms Customer Data Breach After Dark Web Leak Hot for Security, retrieved 2026-03-28^
  12. The Canadian Press. Toys 'R' Us Canada files for creditor protection CBC, 2026-02-03, retrieved 2026-02-03^
  13. Tara Deschamp. Trouble in toyland: Toys 'R' Us Canada facing suits seeking millions in unpaid rent North Shore News, 2026-01-22, retrieved 2026-02-03^
  14. Montreal Gazette. Toys R Us to shut down all but one of its remaining stores in Quebec Montreal Gazette, 2025-12-01, retrieved 2026-03-28^
  15. Hanna Hett. British Columbia's last Toys 'R' Us has closed and here's why Daily Hive, Daily Hive Vancouver, January 15, 2026, retrieved April 5, 2026^
  16. Tara Deschamps. Toys "R" Us Canada closing more stores, will ask permission to sell business: docs CityNews Toronto, 2026-03-27, retrieved 2026-03-28^