Toys R Us Canada to Close Two Stores, Seek Sale Approval

TORONTO Toys "R" Us Canada announced plans to close at least two additional stores as it seeks court approval to initiate a sale of the business, marking another step in its ongoing creditor protection proceedings amid financial difficulties.

The retailer notified landlords of impending closures at the St. Laurent Centre in Ottawa and Woodgate Plaza in St. John's, Newfoundland and Labrador. Court documents indicate that the company will return these properties, along with two others it has already shuttered at the Pen Centre in St. Catharines, Ontario, and in Vaudreuil-Dorion, Quebec. These actions are part of the wind-down efforts under the Companies' Creditors Arrangement Act, which the company filed for earlier this year to address mounting debt that had threatened its operations.

The closures reflect broader challenges for the toy retailer, which has struggled to compete in a market dominated by online shopping and larger discount chains. Since entering creditor protection, Toys "R" Us Canada has been restructuring its lease obligations and operations to stabilize finances. The latest moves come as the company prepares to return to an Ontario court next month to request...