Toys “R” Us Canada Ltd. says it has filed for creditor protection while it works to restructure the business.
The toy retailer says in court documents that the filing was necessary because it has struggled to cope with inflation, rising labour costs, supply chain disruptions and a shift toward e-commerce.
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It says it recently laid off staff, closed unprofitable stores and negotiated with suppliers to try to cope with the headwinds but the moves weren’t enough to help stabilize the company
Toys “R” Us Canada says it now owes at least $120 million to its vendors and substantial amounts to landlords.
While its 22 current stores remain open, the company says it may reduce the number of locations it operates further.
The company had 81 stores when Ancaster, Ont-.based Putman Investments bought the business from Fairfax Financial Holdings Ltd. in 2021.
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