Toys “R” Us Canada May Close More Stores, Court Documents Reveal
Toys “R” Us Canada is considering further closures, as indicated by new court documents. The retailer is in the midst of a creditor protection case and plans to shut its store at Upper Canada Mall in Newmarket, Ontario, by March 31. This follows a lease termination agreement reached with the landlord.
Additional Store Closures on the Horizon
In addition to the Newmarket location, Toys “R” Us Canada has intentions to close another store at the Niagara Pen Centre in St. Catharines, Ontario. This decision is pending an upcoming creditor protection hearing. The company aims to serve a 30-day disclaimer notice to the landlord of the St. Catharines store.
Understanding Disclaimer Notices
- A disclaimer notice terminates lease agreements.
- It facilitates the return of properties to landlords.
Toys “R” Us Canada has not immediately responded to inquiries regarding these court filings. Earlier this month, when the company sought creditor protection, it expressed concern that its 22-store presence could further diminish.
Potential Restructuring Impact
The court documents highlight the possibility that, should the creditor protection be prolonged, the retailer may close a subset of underperforming stores. This could lead to inventory liquidations across several locations.
Current Store Situation
Thirteen of the existing Toys “R” Us Canada stores are leased from affiliates of Putman Investments, the company that acquired Toys “R” Us Canada in 2021. Currently, 11 of these properties are listed for sale by Putman.
History of Closures
Toys “R” Us Canada has experienced significant reductions in its physical presence, closing at least 53 stores over the past two years. This decline coincided with mounting allegations related to unpaid rent and outstanding merchandise bills.
This report by Filmogaz.com is based on information released by The Canadian Press, originally published on February 11, 2026.
