Toys “R” Us Canada is preparing to shut additional locations as it moves through creditor protection, according to newly filed court documents that signal further downsizing could be on the horizon.
In filings connected to its restructuring process, the retailer confirmed it will close its store at Upper Canada Mall in Newmarket by March 31. The company said it has reached a lease termination agreement with the mall’s landlord, clearing the way for the closure.
The documents also reveal plans to exit another location at Niagara Pen Centre in St. Catharines, pending approval at an upcoming creditor protection hearing. The retailer intends to issue a 30-day disclaimer notice for that lease a legal step that relinquishes its rights to the property and returns control to the landlord.
Company representatives and legal counsel did not immediately respond to requests for comment regarding the latest filings.
Earlier this month, when the toy chain sought creditor protection, it cautioned that its current 22-store network could shrink further as part of its restructuring efforts. The court documents reiterate that possibility, stating that if creditor protection is extended, the company plans to close a “sub-set of underperforming” stores and liquidate inventory at those locations.
The filings also shed light on the company’s real estate arrangements. Of its existing stores, 13 operate in properties where affiliates of Putman Investments the owner of Toys “R” Us Canada act as landlord. Eleven of those properties are reportedly being marketed for sale.
Putman acquired the Canadian toy retailer in 2021. Since then, the company has closed at least 53 stores over the past two years while facing claims related to unpaid rent and outstanding merchandise bills.
The restructuring marks another challenging chapter for the once-dominant toy chain as it works to stabilize operations in a shifting retail landscape.
