Toys “R” Us Canada will get more time to avoid paying its creditors as it considers closing more stores. During a virtual hearing, Jane Dietrich of the Ontario Superior Court said she plans to extend the company’s creditor protection until May. The protection lets the struggling retailer pause payments while it plans its future.
Court records show the company owes at least $120 million to suppliers such as Lego, Hasbro, Mattel, Spin Master and Jazwares. Lawyers also want permission to run more liquidation sales if lease talks fail, with any closures needing approval from court monitor Alvarez & Marsal.
The retailer says inflation, higher costs and online shopping forced it to shut 53 stores in two years, leaving 22 still open. Owner Putman Investments bought the chain in 2021 from Fairfax Financial Holdings and may eventually look for a buyer as restructuring continues.
