Toys “R” Us is looking to make a comeback in Canada by teaming up with Staples.
The office supplies retailer has announced that it has finalized an agreement with Next Century Ipco Can ULC to introduce Toys “R” Us and new Parties “R” Us sections in Staples stores beginning this fall.
Next Century acquired roughly 150 trademarks from Toys “R” Us Canada this summer, including the Geoffrey the Giraffe mascot, brand jingles, and classic marketing phrases.
The partnership between Next Century and Staples will start with a pilot launching later this month at a Staples store in Richmond Hill, Ont., a city located just north of Toronto, according to a company press release.
The shop-in-shop rollout will then expand throughout 2027 across the retailer’s nearly 300 Staples Canada stores, the company said.
“As a Canadian company, with close to 300 stores and 11,000 employees serving communities across every province, we’re proud to help write the next chapter for a brand that has been part of childhood in Canada for generations,” Staples Canada CEO Jens Cermak said.
The shop-in-shop locations will feature dedicated retail space for “curated” toys and “exclusive product assortments,” including balloons, party goods, seasonal items, and licensed party products.
Cermak said the same products will be available in store and online.
Next Century is a Canadian unlimited liability corporation and an affiliate of the U.S. media and retail company Ad Populum. It acquired 150 trademarks from Toys “R” Us Canada five months after the chain, owned by Ancaster, Ont.-based entrepreneur Doug Putman, sought creditor protection in February.
The New Jersey-based Ad Populum manages several toy companies and also owns Party City, a specialty retailer that sells party supplies and costumes.
Toys ‘R’ Us Trajectory
Toys “R” Us first arrived in Canada in 1984, opening its first location in Brampton, Ont. It remained a staple of Canadian retail until it filed for creditor protection this winter, leading to the permanent closure of its original storefronts later that summer.
The Canadian division of Toys “R” Us had established its own distinct identity by 2012 and had its strongest years of financial success between 2012 and 2019.
At the time the global parent company went bankrupt in 2017, Toys “R” Us Canada had annual revenues of more than $1.08 billion and had more than 80 stores operating across the country.
Toys “R” Us Canada went through an era of ownership changes beginning in 2018. The U.S. parent company fully liquidated and closed all of its American locations, but the Canadian division of 82 stores was acquired by Fairfax Financial in 2018 for $300 million.
Fairfax Financial sold the chain—then consisting of 81 stores—in August 2021 to Doug Putman, the Canadian billionaire behind Sunrise Records and HMV.
Putman tried to modernize the chain by expanding its physical footprint to more than 100 stores but inflation, high labour costs, and a massive shift to e-commerce caused a financial strain and the retailer began quietly shutting down dozens of underperforming locations in 2025.
The operating company officially filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA), owing in excess of $160 million to lenders, landlords, and suppliers.
An Ontario court approved a complete breakup of the business in June, so its assets could be divided and sold.
Landmark big-box leases, such as the Vaughan Mills location, were sold off entirely to foreign retailers and Next Century bought the brand rights for $27 million.
Putman’s investment firm bought back the inventory, logistics contracts, and 10 remaining physical store leases, operating under a temporary licence to use the name until January 2027, with plans to likely rebrand those locations.
The Canadian Press contributed to this report.
