Toys R Us Canada's Sale Process Underway

0:00It's March 27. This is Toronto News Today, your AI-powered local news. Toys RS Canada is pushing ahead with a formal sale process for its business or assets as part of its restructuring under creditor protection. The retailer first filed for that protection in early February 2026 and recent core documents outlined steps to maximize value for. Creditors, while stores stay open. Here this week on March 27, the company asked the core for approval next month to kick off the sale. If Greenlit, buyers could submit bids in May 2026, with winners picked by June and deals possibly closing by mid-July. The goal is a going concern sale to save the brand in jobs, though breaking up assets remains an option. The chain store count has plummeted from 81 locations when acquired in 2021 to just 22 today. Since after more than 50 closures over two years, including recent ones at St. Laurent Center in Ottawa and Woodgate Plaza in St. John's, as leases get handed back to landlords.

1:06Financial strain is intense, with nearly $500 million in liabilities, dwarfing $127 million in assets, plus a $170 million net loss over 10 months through late 2025. A big hit came from supply chain chaos when a key distributor tied to the owners entered receivership, halting shipments from major toy makers like Mattel and Hasbro. Staff numbers have dropped to around 510 from over a thousand, with some facing minimal severance that could spark disputes. Gift card holders deal with fewer spots to spend them and no online option anymore. As the sale timeline tightens, the focus stays on finding a path forward amid these mounting pressures.