Toys “R” Us Canada Closes 38 Stores, Impacting Workers Nationally

Toys “R” Us Canada has closed at least 38 stores this year and has placed another 12 locations up for sale, significantly reducing its presence in the country. According to reports from the Edmonton Journal and Financial Post, the retailer, which once operated 103 locations following a buyout by billionaire Doug Putman, now has only 40 stores remaining across Canada.

The closures are part of a broader trend affecting the retail sector, driven by increased competition and financial challenges within Putman’s business network. His family-owned distribution company, Everest Toys, is currently in receivership after defaulting on a loan from TD Bank.

Real Estate and Job Losses

A review of commercial listings reveals that seven Toys “R” Us properties are up for sale, with a combined asking price of nearly $121 million. Additionally, five more stores are listed without posted prices, and a former site in Barrie, Ontario, is available for lease. Land title records indicate that several locations, including those in Calgary, Edmonton, Regina, Kingston, and Kitchener, have been transferred to numbered companies associated with Putman.

Calgary real estate broker Sunil Mall, who manages five listings in Alberta, noted that these properties are being marketed as vacant. “These are valuable sites that they’re sitting on,” Mall said, highlighting the potential for new tenants. If all five Alberta properties are sold without retaining the Toys “R” Us brand, the province could be left with just two stores.

The closures have led to job losses across multiple provinces. In Quebec, the labour department reported nine store closures affecting 183 workers this year, while an additional twenty-nine stores closed across the rest of the country in 2025. Employment lawyer Lior Samfiru mentioned that his firm has been contacted by at least 30 current or former employees seeking advice regarding their job losses.

Market Pressures and Strategic Challenges

Retail analysts attribute the decline of Toys “R” Us to broad pressures faced by traditional brick-and-mortar stores in an increasingly competitive landscape, particularly 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 added that the situation reflects “many of the stresses” affecting the sector.

Founded in 1957 and launched in Canada in 1984, Toys “R” Us was once a leading retailer in the toy market. Putman expanded the chain to over 100 stores in 2023 and introduced new store formats featuring indoor play areas, but not all of these innovations have proven successful. Three of the eight “Playlab” locations in Ontario are now listed for sale.

Retail consultant Doug Stephens remarked on the company’s struggles, stating, “The world really does not need a warehouse toy store. What it does need are stores that have experiences.” This sentiment underscores the need for Toys “R” Us to redefine its market approach to survive.

Financial troubles at Everest Toys have compounded these challenges. Court documents indicate that Everest owed roughly $26 million when it ceased communication with TD Bank. Kathryn Furfaro, a commercial credit manager at TD, noted that Everest was “generally non-responsive” during critical refinancing discussions.

James Zahn, editor-in-chief of The Toy Book, emphasized that the collapse of Everest Toys is impacting Toys “R” Us Canada. “There are residual side effects that are starting to impact the business,” he stated.

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

With the ongoing changes in the retail landscape, the fate of Toys “R” Us Canada will depend on its ability to adapt and innovate in a dynamic environment.