Doug Putman, founder of Putman Investments, at a Toys 'R' Us store in Hamilton, Ontario, with family members.
The Canadian Toys “R” Us unit is getting new owners.
Putman Investments, a Canadian-based, family-owned company, announced plans to purchase the retail operations of Toys ‘R’ Us Canada (also includes Babies 'R' Us stores) from Fairfax Financial Holdings. The two chains operate 81 stores across 10 Canadian provinces. The financial terms of the deal were not disclosed.
Fairfax bought the business in 2018 for $234 million ($C300 million), not long after it filed for bankruptcy in the United States. Under the terms of its deal with Putnam, Fairfax retains substantially all of the real estate acquired in its original purchase of Toys'R'Us Canada, as well as a continuing royalty stream that will provide it an opportunity to “benefit over time in the future success of the business,” the company said.
“Toys'R'Us and Babies'R'Us are extremely strong brands that have been in great hands over the past three years,” says Doug Putman, founder of Putman Investments. “Since its split from the U.S., we've watched the way in which the company has grown and focused on the Canadian customer. Much has been achieved and we're excited to help to drive the business forward.”
Meanwhile, the U.S. Toys ‘R’ business is making a comeback in partnership with Macy’s. The toy retailer, which is now owned by WHP Global, plans to open more than 400 branded in-store shops in Macy’s stores nationwide, starting in 2022.