Toys ‘R’ Us Canada (TRU Canada) has sought protection from creditors under the Companies’ Creditors Arrangement Act (CCAA), the Canadian version of Chapter 11 bankruptcy, as it evaluates strategic alternatives and implements restructuring initiatives. TRU Canada is owned by Putman Investments; it was purchased in 2018 following a bankruptcy and reorganization of the U.S. based parent company, Toys ‘R’ Us, which is owned by brand management firm WHP Global.
The initiatives by TRU Canada include reducing the retailer’s brick-and-mortar footprint; TRU Canada currently operates 38 stores across the country, according to its website, and they will remain open during the restructuring process. However, the website currently carries a notice of the retailer entering CCAA and that the web store is “unavailable.”
The initial order from the Ontario Superior Court of Justice provides for a stay of proceedings in favor of TRU Canada for an initial period of 10 days, subject to extension as the Court deems appropriate.
TRU Canada has appointed Neil Taylor as Chief Restructuring Officer; he will help navigate the CCAA process while maintaining operations. Alvarez & Marsal Canada has been appointed as the CCAA Monitor.
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