A Toronto court granted Toys “R” Us Canada permission on June 22, 2026 to split its business and sell assets to three separate buyers. Judge Jane Dietrich signed the order, allowing the retailer to move forward with a restructuring plan that involves multiple parties acquiring portions of the chain.
The court decision follows a request from the current owner of Toys “R” Us Canada, which has been struggling financially in recent months. By authorising the division of the business, the ruling aims to generate funds that can be applied toward the company’s outstanding debts.
Under the approved plan, each of the three buyers will acquire specific assets of the retailer, though the details of which assets will change hands have not been disclosed. The arrangement is intended to preserve parts of the operation while providing the cash flow necessary to address the company’s liabilities.
Legal experts note that the approval marks a significant step in the retailer’s effort to stabilize its finances and avoid further deterioration. The court’s endorsement reflects the belief that the proposed sales are a viable path to reducing the debt burden and potentially sustaining the brand’s presence in the Canadian market.