Toys “R” Us Canada Closes Stores, Leaving Employees in Limbo

Toys “R” Us Canada has closed at least 38 stores this year and placed another 12 locations up for sale, according to reports from the Edmonton Journal and Financial Post. The national retailer, which had operated 103 stores after billionaire Doug Putman acquired the brand, now has just 40 locations remaining open across the country. This significant downsizing follows external pressures in the retail sector coupled with financial difficulties within Putman’s business network.

Putman purchased 81 Canadian stores in 2021 with plans for expansion but has not responded to inquiries regarding the recent closures. The situation has been exacerbated by financial troubles at his family-owned distribution company, Everest Toys, which is currently in receivership after defaulting on a loan from TD Bank.

Real Estate Sell-Off and Job Losses

A nationwide review of commercial listings reveals that seven Toys “R” Us properties are currently for sale, with a combined asking price of nearly $121 million. Five additional locations are listed without posted prices, and a former site in Barrie, Ontario, is available for lease. Land title records indicate several stores, including those in Calgary, Edmonton, Regina, Kingston, and Kitchener, have been transferred to Ontario numbered companies associated with Putman’s base in Ancaster, Ontario. Some filings show that Fairfax Financial Holdings Ltd., the previous owner of the Canadian chain, held claims on these properties until late 2024.

According to Calgary real estate broker Sunil Mall, overseeing five listings in Alberta, the sites are being marketed as vacant. “These are valuable sites that they’re sitting on,” Mall stated. Should all five Alberta properties sell to new tenants without retaining the brand, the province could be left with only two Toys “R” Us stores.

Job losses have also been significant, with government data indicating layoffs across multiple provinces. Quebec’s labour department reports nine store closures affecting 183 workers this year, while 29 other stores have closed across the country in 2025. Employment lawyer Lior Samfiru noted that his firm has been contacted by at least 30 employees seeking advice after being informed of their job losses. “They weren’t advised of the circumstances,” he said. Ontario’s labour ministry confirmed that the company’s former head office in Vaughan is now vacant, and rapid re-employment services have been activated following the closure notification.

Industry Pressures and Future Outlook

Retail analysts suggest that Toys “R” Us reflects a broader trend among traditional brick-and-mortar retailers facing increasing competition from online giants like Amazon and Walmart. “With more options and convenience online, some retailers are reducing their footprints,” explained Jenna Jacobson, an associate professor at Toronto Metropolitan University. She described the current retail landscape as indicative of “many of the stresses” affecting the sector.

Founded in 1957 and launched in Canada in 1984, Toys “R” Us was once a dominant player in the big-box retail market. Under Putman, the Canadian chain expanded to over 100 stores in 2023 and introduced experimental “Playlab” formats featuring indoor play areas. Despite the closure of three out of eight such locations in Ontario, retail consultant Doug Stephens believes the company is struggling to stand out in a crowded market. “The world really does not need a warehouse toy store,” he stated. “What it does need are stores that have experiences.”

Financial difficulties at Everest Toys further complicate the situation. Court filings from TD Bank’s receivership application reveal that Everest owed roughly $26 million when it ceased communication with the bank. Kathryn Furfaro, a commercial credit manager at TD, noted that Everest was “generally non-responsive” during refinancing discussions. James Zahn, editor-in-chief of The Toy Book, acknowledged that the distributor’s collapse is now affecting Toys “R” Us Canada.

Despite the ongoing closures, analysts remain cautiously optimistic about the future of the Toys “R” Us brand. “I don’t think it’s a death story,” Jacobson remarked. “It’s the reality of the market.”