Key Takeaways
- Toys “R” Us Canada is selling its name, trademarks, inventory, and select leases to three separate buyers while under creditor protection.
- U.S. firm Ad Populum will acquire the Toys “R” Us Canada and Babies “R” Us Canada brand names, roughly 150 trademarks (including Geoffrey the giraffe), website domains, and social‑media accounts.
- A numbered company owned by current owner Doug Putman will purchase 10 store leases, the chain’s inventory, equipment, logistics contracts, and bank accounts.
- Israel‑based Fox Group Jumbo Canada is set to buy the lease for the 48,000‑square‑foot Vaughan Mills location.
- The company entered creditor protection in February 2026 with over $160 million owed to unsecured creditors; it hopes the asset sales will generate proceeds to satisfy those claims.
- Since the filing, Toys “R” Us Canada has closed dozens of stores, reducing its footprint from 562 employees in February to 260 employees after announcing three additional closures in mid‑June.
- The sales process attracted 90 approaches, yielded 11 non‑binding letters of intent, and was narrowed to two comprehensive bids, two intellectual‑property‑only bids, and one lease‑only offer; court approval is sought on June 22, with closings expected in July.
Background and Reason for the Sale
Toys “R” Us Canada placed itself up for sale in April 2026 after two months of being in creditor protection, a legal process initiated in February when the retailer could not meet its financial obligations. The move was intended to generate cash to pay down more than $160 million owed to unsecured creditors while seeking a viable path forward for the business. The company had already been shrinking its physical presence, having closed 53 stores over the prior two years and faced numerous lawsuits from suppliers and landlords. By entering creditor protection, those litigation actions were stayed by the court, allowing the retailer to focus on restructuring its assets.
Ad Populum’s Intellectual‑Property Purchase
Court documents reveal that Ad Populum, a U.S.–based firm that manages several toy‑related enterprises (including the company behind the Chia Pet and an operator of Graceland in Tennessee), has been selected to acquire the rights to the Toys “R” Us Canada and Babies “R” Us Canada brand names. In addition to the names, Ad Populum will obtain approximately 150 of the retailer’s trademarks, covering the iconic Geoffrey the giraffe mascot, various logo designs, and a suite of website domains and social‑media accounts associated with the Canadian operations. The purchase does not include physical stores or inventory, focusing instead on the intangible assets that could be leveraged for future licensing or re‑branding efforts. No monetary value for this transaction has been disclosed in the filings.
Doug Putman’s Numbered Company Deal
A separate agreement involves a numbered company owned by the current proprietor of Toys “R” Us Canada, Doug Putman. This entity has been chosen to buy 10 store leases, the entirety of the chain’s inventory, equipment, logistics contracts, and the bank accounts associated with the business. Putman, who also controls HMV, Sunrise Records, Northern Reflections, Ricki’s, and Cleo through various numbered companies, has not publicly detailed his plans for these assets. His lawyer did not respond to a request for comment, leaving the strategic intent behind the purchase unclear. The deal, like the others, awaits court approval before it can close.
Fox Group Jumbo Canada’s Vaughan Mills Lease
The third notable transaction concerns the lease for the 48,000‑square‑foot Toys “R” Us location at Vaughan Mills, a major shopping mall just north of Toronto. Fox Group Jumbo Canada, an Israel‑based operator that is rolling out large‑format discount stores across Canada, has expressed interest in acquiring this lease. The company aims to use the space for its own discount‑retail concept, which would mark a significant shift from the traditional toy‑store format that has occupied the premises for years. As with the other deals, the exact financial terms have not been made public, and the transaction is contingent on judicial sanction.
Creditor Protection, Debt, and Court Timeline
Toys “R” Us Canada entered creditor protection in February 2026 after failing to meet obligations that exceeded $160 million to unsecured creditors. The protection halted ongoing lawsuits from suppliers and landlords, allowing the company to cease operations at underperforming locations. By April, the chain had been trimmed to 18 stores, and a further three closures were announced in mid‑June (Midtown Plaza in Saskatoon, St‑Bruno, Quebec, and Kingston, Ontario), bringing the employee count down from 562 to approximately 260. The retailer has stated that its total assets are valued at $126.8 million, a figure cited in court filings to contextualize the scale of the sales effort. The company is scheduled to seek formal approval for the proposed asset sales on June 22, with the successful bids expected to close in July, pending the judge’s endorsement.
Sale Process, Bids, and Prospective Outcomes
The sales initiative began with outreach to 90 potential buyers in the spring. Eleven of those parties submitted non‑binding letters of intent, indicating preliminary interest. After reviewing the proposals, Toys “R” Us Canada narrowed the field to two comprehensive bids for all assets, two bids limited solely to intellectual property, and one offer for a single unspecified lease. The Ad Populum and Doug Putman‑related deals represent the two winning comprehensive proposals, while the Fox Group Jumbo Canada agreement corresponds to the lease‑only offer. The court has not disclosed any purchase prices, leaving the financial impact on creditor repayment uncertain. Nevertheless, the structured approach aims to maximize recoveries by separating high‑value intangible assets from physical operations that may be more challenging to sell en bloc.
Doug Putman’s Broader Business Portfolio and Past Ventures
Doug Putman’s involvement with Toys “R” Us Canada dates back to 2021, when he acquired the business from Fairfax Financial. Prior to this, Putman built a diversified retail portfolio that includes HMV (music and entertainment), Sunrise Records, Northern Reflections (apparel), Ricki’s (women’s clothing), and Cleo (accessories). He also launched a home‑goods chain called Rooms + Spaces and took over T. Kettle’s tea shops; both of those ventures have since closed all locations under his ownership. Additionally, Putman served as an executive at Sister company Everest Toys, which was placed into receivership by TD Bank in the previous year after the bank claimed $25 million in owed funds. These experiences illustrate a pattern of acquiring struggling brands, attempting to turn them around, and, when unsuccessful, moving on to other opportunities.
Historical Context: Fairfax’s Rescue and the U.S. Bankruptcy
Fairfax Financial originally intervened in 2018, paying roughly $300 million to rescue Toys “R” Us Canada and its Babies “R” Us counterpart after the separately operated U.S. arm of Toys “R” Us filed for bankruptcy protection. That infusion allowed the Canadian operations to continue trading, though the underlying financial pressures persisted. The subsequent years saw repeated store closures, declining foot traffic, and mounting debts, ultimately leading to the 2026 creditor‑protection filing. The current asset‑sale strategy reflects an attempt to extract value from the brand’s remaining equity—particularly its recognizable name and mascot—while allowing the physical retail footprint to be re‑assigned to other operators who may have different business models.
Conclusion
The unfolding sale of Toys “R” Us Canada’s assets marks a pivotal moment for a once‑iconic Canadian retailer. By separating the brand’s intellectual property from its physical stores and inventory, the company hopes to satisfy creditor claims while giving the name and mascot a chance to survive through licensing or new ventures. The involvement of Ad Populum, a bidder with experience in niche toy and entertainment properties, suggests a potential future where the Toys “R” Us identity lives on in product lines or experiential retail rather than traditional brick‑and‑mortar stores. Meanwhile, Doug Putman’s numbered‑company acquisition of leases, inventory, and logistics hints at a possible continuation of some operational capacity, though his exact intentions remain undisclosed. The final outcome will hinge on the court’s June 22 approval and the subsequent closing of the deals in July, after which the future of the Toys “R” Us Canada brand—and the fate of its remaining employees and locations—will become clearer.