Court Approves Sale of Toys 'R' Us Canada Assets
Toys 'R' Us Canada has obtained court approval to sell parts of its business to three separate firms, according to a report by The Canadian Press on June 22, 2026. The decision, made by the Ontario Superior Court of Justice, allows the toy retailer to proceed with the sale of certain assets as part of its restructuring under the Companies' Creditors Arrangement Act (CCAA).
Details of the Sale
The court order permits Toys 'R' Us Canada to sell its assets to three undisclosed companies. The specific terms of the sale, including which assets are being transferred and the purchase prices, have not been publicly disclosed. The retailer filed for CCAA protection earlier this year, citing financial challenges exacerbated by changing consumer habits and increased competition from online retailers.
Toys 'R' Us Canada operates dozens of stores across the country and employs thousands of workers. The sale is expected to preserve some jobs and maintain a physical retail presence, though the exact number of stores and employees affected remains unclear.
Impact on the Canadian Retail Landscape
The approval marks a significant milestone in the company's efforts to restructure its operations and emerge from creditor protection. Industry analysts note that the toy retail market in Canada has been under pressure, with major players like Walmart and Amazon capturing significant market share. The sale could lead to a leaner, more focused Toys 'R' Us Canada, potentially rebranding or downsizing its footprint.
According to the Canadian Press, the court also approved a process for creditors to object to the sale, though no objections were filed by the deadline. The company is expected to complete the transactions in the coming weeks, subject to customary closing conditions.
