Toys “R” Us Canada has sought protection under the Companies’ Creditors Arrangement Act (CCAA) as of February 3, 2026, marking a significant turning point for one of Canada’s well-known retail names. This decision follows several years of store closures and increasing financial strain on its parent company, Putman Investments.
Here’s what we know so far:
The Filing The Ontario Superior Court of Justice has granted an initial stay of proceedings lasting 10 days, with options for extensions. This provides temporary protection from creditor lawsuits while the company works on a restructuring strategy. Alvarez & Marsal Canada Inc. is appointed as monitor to supervise the process, with Neil Taylor acting as Chief Restructuring Officer.
The Numbers Toys “R” Us Canada started 2024 with over 100 stores across the country. Now, around 22 locations are still open nationwide. The company has shut down 53 stores in just the last two years and owes at least $120 million to suppliers, along with considerable debts to landlords.
What’s Still Open All currently operating locations will stay open during this initial restructuring period. However, the company has stated that downsizing its retail presence will be part of this plan. The online shopping platforms (Toysrus. ca, Babiesrus. ca and HMV. ca) are not available right now and show a message directing shoppers to visit physical stores.
hmv. ca/en/folder? cid=about-company-info
The Toronto Impact
For families in Toronto, the reduction of Toys “R” Us locations has been particularly severe. The Greater Toronto Area (GTA) has lost multiple sites over the past year, significantly altering the shopping experience for parents and kids throughout the region.
The closing of the Dufferin Mall store at the end of December was especially impactful for local families. Liquidation signs appeared in early November, and by year-end, this large store-a landmark at 900 Dufferin Street-had shut its doors for good. The timing coincided with peak holiday shopping season, surprising many parents.
The Scarborough Town Centre location also closed unexpectedly shortly after Christmas; similarly, another store at Victoria Terrace Shopping Centre on Lawrence Avenue East closed down-a surprising turn considering it had recently undergone renovations and included a sizable indoor play area.
Other closures in GTA include shops in Markham (CF Markville closed August 2025), various Mississauga locations, and Newmarket’s Upper Canada Mall site which is now liquidating with clearance signs displayed.
Remaining GTA stores include those in Vaughan, Etobicoke, Brampton, Don Mills, North York, Whitby and Scarborough; however, their long-term future is uncertain due to the CCAA filing.
The shutdowns limit options for Toronto families looking for an enjoyable toy shopping experience. While other retailers exist-including Mastermind Toys and Indigo-and smaller independent shops like Playtime Toys and Toy Terminal-the closure of numerous large-format Toys “R” Us outlets marks a notable change in how families shop for toys in this area.
For landlords and shopping centers facing these empty big-box spaces poses challenges.
<img decoding="async" width="1200" height="900" alt="" class="wp-image-6454 lazyload ewww_webp_lazy_load" src="https://ontariochronicle. ca/wp-content/uploads/2026/02/IMG_5843. jpg" data-eio-rwidth="1200" data-eio-rheight="900" src-webp="https://ontariochronicle. ca/wp-content/uploads/2026/02/IMG_5843. jpg. webp" srcset-webp="https://ontariochronicle. ca/wp-content/uploads/2026/02/IMG_5843. jpg. webp 1200w, https://6ixretail. com/wp-content/uploads/2025/12/IMG_5843-500×375. jpg. webp 500w,..
What This Means for the Industry The filing by Toys “R” Us highlights some tough realities faced by specialty retailers across Canada today. Changes towards online shopping habits-coupled with price-focused buying through giants like Amazon and Walmart-alongside seasonal trends within toy sales have drastically affected how these larger specialty stores operate financially.
Court documents mention inflation issues along with rising labor costs and disruptions in supply chains as major reasons behind this filing decision. Throughout both 2023 and early 2024 they tried layoffs alongside store closings while also negotiating with suppliers but couldn’t stabilize their operations successfully enough to keep afloat long-term.
hmv. ca/en/folder? cid=about-company-info
The Toronto Impact
For families in Toronto, the reduction of Toys “R” Us locations has been particularly severe. The Greater Toronto Area (GTA) has lost multiple sites over the past year, significantly altering the shopping experience for parents and kids throughout the region.
The closing of the Dufferin Mall store at the end of December was especially impactful for local families. Liquidation signs appeared in early November, and by year-end, this large store-a landmark at 900 Dufferin Street-had shut its doors for good. The timing coincided with peak holiday shopping season, surprising many parents.
The Scarborough Town Centre location also closed unexpectedly shortly after Christmas; similarly, another store at Victoria Terrace Shopping Centre on Lawrence Avenue East closed down-a surprising turn considering it had recently undergone renovations and included a sizable indoor play area.
Other closures in GTA include shops in Markham (CF Markville closed August 2025), various Mississauga locations, and Newmarket’s Upper Canada Mall site which is now liquidating with clearance signs displayed.
Remaining GTA stores include those in Vaughan, Etobicoke, Brampton, Don Mills, North York, Whitby and Scarborough; however, their long-term future is uncertain due to the CCAA filing.
The shutdowns limit options for Toronto families looking for an enjoyable toy shopping experience. While other retailers exist-including Mastermind Toys and Indigo-and smaller independent shops like Playtime Toys and Toy Terminal-the closure of numerous large-format Toys “R” Us outlets marks a notable change in how families shop for toys in this area.
For landlords and shopping centers facing these empty big-box spaces poses challenges.
<img decoding="async" width="1200" height="900" alt="" class="wp-image-6454 lazyload ewww_webp_lazy_load" src="https://ontariochronicle. ca/wp-content/uploads/2026/02/IMG_5843. jpg" data-eio-rwidth="1200" data-eio-rheight="900" src-webp="https://ontariochronicle. ca/wp-content/uploads/2026/02/IMG_5843. jpg. webp" srcset-webp="https://ontariochronicle. ca/wp-content/uploads/2026/02/IMG_5843. jpg. webp 1200w, https://6ixretail. com/wp-content/uploads/2025/12/IMG_5843-500×375. jpg. webp 500w,..
What This Means for the Industry The filing by Toys “R” Us highlights some tough realities faced by specialty retailers across Canada today. Changes towards online shopping habits-coupled with price-focused buying through giants like Amazon and Walmart-alongside seasonal trends within toy sales have drastically affected how these larger specialty stores operate financially.
Court documents mention inflation issues along with rising labor costs and disruptions in supply chains as major reasons behind this filing decision. Throughout both 2023 and early 2024 they tried layoffs alongside store closings while also negotiating with suppliers but couldn’t stabilize their operations successfully enough to keep afloat long-term.
