Toys "R" Us Canada moves forward with asset sales
Court approves deals splitting company's name, trademarks, and store leases among three buyers as chain continues winddown.
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Toys "R" Us Canada has reached three separate deals to sell off its assets, court records show, as the retailer works to pay down more than $160 million in unsecured debt.
The U.S. firm Ad Populum will acquire the rights to the Toys "R" Us Canada and Babies "R" Us Canada names, along with about 150 trademarks including Geoffrey the giraffe mascot and all web and social media accounts. A numbered company owned by current owner Doug Putman will buy 10 store leases, inventory, equipment, and logistics contracts. Fox Group Jumbo Canada, an Israel-based discount retailer, will purchase the 48,000-square-foot Vaughan Mills location.
The company entered creditor protection in February after closing 53 stores within two years. By April, when it went up for sale, only 18 locations remained. Friday's court documents reveal three more closures—Midtown Plaza in Saskatoon, St-Bruno in Quebec, and Kingston, Ontario—leaving the chain with 15 stores and 260 employees, down from 562 when creditor protection began.
Court approval is required for all transactions. The company will ask the court for approval on June 22. Ad Populum and Jumbo's deals are expected to close in July. Putman has not disclosed what he'll do with his acquired assets, and no precise closing date has been set for his deal.
The process narrowed 90 approached companies down to final bids. Assets are valued at $126.8 million.