Toys “R” Us Canada May Shut More Stores, Court Filings Reveal
Toys “R” Us Canada is poised for further store closures, as revealed in recent court filings related to the company’s creditor protection case. The retailer has announced the planned closure of its Upper Canada Mall location in Newmarket, Ontario, by the end of March 2026. This decision follows a lease termination agreement with the landlord.
Upcoming Store Closures
In addition to the Newmarket location, Toys “R” Us Canada is considering shutting down another store at the Niagara Pen Centre in St. Catharines, Ontario. This action awaits the outcome of an upcoming creditor protection hearing.
Lease Disclaimer Notice
The company has stated its intention to issue a 30-day disclaimer notice to the landlord of the St. Catharines store. This notice effectively relinquishes the store’s lease, allowing the property to revert to the landlord.
Company Restructuring
Earlier this month, Toys “R” Us Canada initiated restructuring efforts and filed for creditor protection. The retailer indicated that its current store count of 22 could decline even more in the near future.
Financial Challenges
- Thirteen of the current locations are managed by affiliates of Putman Investments, the company that owns Toys “R” Us Canada.
- Putman is actively marketing 11 of these properties for sale.
- Since purchasing the retailer in 2021, Putman has closed at least 53 stores amidst ongoing financial difficulties, including allegations of overdue rent and unsettled merchandise bills.
As Toys “R” Us Canada navigates this challenging phase, more closures are likely if the court extends its creditor protection. The focus remains on liquidating inventory from underperforming stores as the retailer aims for financial recovery.
