TORONTO — New court documents show Toys “R” Us Canada is on the cusp of closing more locations.
In filings related to its creditor protection case, the retailer says it will shutter its location at Upper Canada Mall in Newmarket, Ont., by March 31 after it reached a lease termination agreement with the landlord.
It says it also wants to close another store at the Niagara Pen Centre in St. Catharines, Ont., pending the upcoming creditor protection hearing.
Documents say Toys “R” Us Canada wants to give the landlord for that store a 30-day disclaimer notice. Disclaimer notices essentially give up leases and pave the way for properties to be turned back over to landlords.
A Toys “R” Us Canada spokesperson and the company’s lawyers did not immediately respond to a request for comment about the filings.
However, when the company filed for creditor protection and began restructuring earlier this month, it warned its 22-store footprint could shrink even further. The court documents reaffirm that possibility saying, if the retailer’s creditor protection is extended the firm will close a “sub-set of underperforming” stores and liquidate their inventory.
Thirteen of the existing stores have affiliates of Toys “R” Us Canada-owner Putman Investments as a landlord. The documents say 11 of those properties are currently being marketed for sale by Putman.
Putman purchased Toys “R” Us Canada in 2021 and has closed at least 53 stores over the last two years, while the retailer battled allegations of unpaid rent and bills for merchandise.
