Toys R Us Canada: Status, Closures & CCAA Filing 2026

Toys R Us Canada has survived once before — in 2017, when the U.S. parent collapsed entirely, Canadian stores stayed open after a last-minute sale to Fairfax Financial. Now the chain is fighting for survival with just 22 stores, a suspended website, and $496 million in liabilities against roughly $127 million in assets.

Stores: 22 remaining · CCAA filing: February 2026 · Total liabilities: $496.78M · Net loss: $170M to Nov 2025

Does Toys R Us still exist in Canada?

Yes — but barely. As of November 2025, Toys R Us Canada operated 22 store locations, all co-located with Babies R Us, according to court filings reported by Retail Dive. That is a sharp drop from the roughly 100 stores the chain once operated across the country.

Current store status

The 22-store footprint represents a fraction of what the chain once was. Toys R Us Canada has closed at least 53 locations in the two years leading up to the November 2025 CCAA filing, with at least 38 of those closures occurring in 2025 alone. The e-commerce platform is suspended during the insolvency proceedings, and the chain is no longer accepting gift cards — a red flag for customers holding outstanding balances. Liquidation sales have been approved by a judge for some remaining locations.

Recent updates from official sources

On March 27, 2026, court filings revealed plans for a formal sale process, with bids due in May and a potential closing by mid-July 2026 (Retail Insider). Alvarez & Marsal Canada Inc. was appointed as the court monitor overseeing the proceedings. Ontario Superior Court granted a stay of proceedings and approved interim financing to keep operations running during the sale process.

Why did Toys R Us close stores in Canada?

Multiple pressures converged. Persistent inflation drove up labor and occupancy costs. Post-pandemic supply chain disruptions squeezed margins. A structural shift toward e-commerce hit traditional bricks-and-mortar retailers hard — and Toys R Us Canada was already carrying significant debt from its 2017 brush with insolvency. The company recorded a net loss of approximately $170 million over the ten months ending November 2025, with total liabilities estimated at $496.78 million against just $126.85 million in assets.

Bankruptcy history

This is not Toys R Us Canada’s first insolvency. In 2017, when the U.S. parent filed for bankruptcy on September 18, 2017, the Canadian division also filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA). However, unlike the U.S. operation — which ultimately liquidated all stores — the Canadian division avoided closures at that time. Analysts later criticized that decision, arguing the chain missed an opportunity to exit unprofitable leases and restructure its footprint.

Creditor reprieve extensions

After the 2017 filing, the Canadian operations were sold to Fairfax Financial on April 24, 2018, for approximately $234 million. That sale kept stores open, but the underlying financial issues persisted. Court records show the company faced lawsuits from landlords and suppliers in the years following. By early 2026, the chain was back before the Ontario Superior Court, seeking creditor protection again — this time with a formal sale process underway.

Is Toys R Us Canada Canadian owned?

Yes. Toys R Us Canada was acquired by Fairfax Financial, a Canadian holding company, on April 24, 2018, following the U.S. parent’s bankruptcy. The acquisition was completed through the CCAA process and gave the Canadian division operational independence from the collapsing U.S. entity. This is why Canadian stores survived when American locations closed entirely.

Ownership structure

Fairfax Financial, led by Prem Watsa, purchased the Canadian operations in 2018. As a Canadian-owned company, the Canadian division operated under a separate corporate structure from the U.S. parent. However, owning a struggling retail chain proved challenging. By early 2026, the company owed at least $120 million to vendors and faced additional substantial liabilities to landlords.

Franchise origins

The Canadian franchise traces its roots to 1984, when Toys R Us first expanded into Canada. For decades, the chain operated as a subsidiary of the U.S. parent company before the 2018 sale to Fairfax Financial gave it independent ownership. That independence is why Canadian stores remained open through the U.S. collapse — and why they now face their own independent insolvency proceedings.

How is Toys R Us Canada different from the U.S. version?

The divergence is stark. The U.S. Toys R Us collapsed entirely in 2018 — all stores closed, the brand essentially disappeared from American shopping centers, and a planned revival through lenders collapsed. In Canada, Fairfax Financial’s 2018 acquisition kept stores running, and the brand survived when the U.S. version did not.

Operational independence

Canadian operations under Fairfax Financial operated independently from the U.S. entity. This separation proved both a lifeline and a complication. The Canadian chain avoided the U.S. liquidation, but it also lacked access to the scale, purchasing power, and brand investments the U.S. operation might have provided. Meanwhile, the brand continued in the UK and Asia, but no comparable revival efforts have materialized for Canada.

Legal battles

The Canadian division has faced mounting legal challenges. Court records show lawsuits from landlords and suppliers over unpaid rent and outstanding invoices. The 2025 receivership of Everest Toys — a key supplier — disrupted the supply chain, halting shipments from major vendors including Mattel, Hasbro, and Spin Master. That supply disruption compounded the financial pressure from declining in-store sales in 2023 and 2024.

Where are Toys R Us Canada locations?

Finding an open Toys R Us Canada store has become increasingly difficult. With only 22 locations remaining as of February 2026, geographic coverage is thin — and some regions have no stores at all.

Store locator

The company previously operated an official store locator at toysrus.ca, though the e-commerce platform is currently suspended during the CCAA process. Customers seeking in-store pickup or information about specific locations face limited options as the chain shrinks toward a potential sale.

Major cities like Kingston, Windsor, Hamilton

• British Columbia: No Toys R Us stores remain. The province once had locations but all have closed.
• Alberta: The Calgary store closed in January 2026. No stores remain in the province.
• Ontario: Closures include Niagara Pen Centre in Ontario, St. Laurent Centre in Ottawa (announced closure), and Kitchener (location up for sale as of early 2026).
• Quebec: The Vaudreuil Dorion location has closed.
• Newfoundland: The Woodgate Plaza location in St. John’s is among announced closures.

“The Applicant has 22 store locations located in Canada. These stores, and the hundreds of employees who support them, continue to serve customers nationwide. However, persistent inflation, rising labour and occupancy costs, post-pandemic supply chain disruptions, and a structural shift toward e-commerce have materially weakened the performance of traditional bricks and mortar retailers.”

— Toys R Us Canada court filing via TheStreet

“Toys ‘R’ Us Canada seeks buyers as insolvency deepens, with bids expected in May and a potential sale by July 2026.”

— Retail Insider