The Globe and Mail reports in its Thursday edition that signs of financial distress are mounting at Toys "R" Us Canada, with multiple locations closing in recent weeks and landlords saying they are owed unpaid rent.
The Globe's Susan Krashinsky writes that the latest closings add to a contraction that has shrunk the toy chain by more than half in less than five years: In 2021, when family-owned Putman Investments bought Toys "R" Us and Babies "R" Us Canada from Fairfax Financial, the chain had 81 locations across the country. Currently, the website lists 40 stores, but several of those links lead to blank web pages with no address or store information, and lists cities such as Calgary, Langley, B.C., Guelph, Ont., and the Toronto suburb of Scarborough, where locations have recently shut their doors.
In Guelph, the Toys "R" Us at Stone Road Mall had its lease terminated on Jan. 17 after the store failed to pay its rent. A notice posted in the store window by Primaris stated that if Toys "R" Us owners did not remove inventory, fixtures and personal belongings by Jan. 30, they would be removed and may be disposed of. On Wednesday, staff could be seen inside packing up items, and shelves were largely empty.
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