Toys R Us Canada has filed for creditor protection under the Companies’ Creditors Arrangement Act and plans to reduce its store footprint.

The retailer announced that Toys R Us (Canada) Ltd. and Toys R Us (Canada) Ltee made the move after obtaining an initial order from the Ontario Superior Court of Justice.

“After careful consideration of all reasonably available alternatives, TRU Canada has sought creditor protection under the CCAA to obtain a stay of proceedings as it evaluates its strategic alternatives and implements certain restructuring initiatives,” said the chain. “These initiatives will include reducing its retail footprint to better position the Company in today’s retail environment. All of TRU Canada’s currently active stores will remain open during this process.”

The initial court order provides a stay of proceedings for 10 days, subject to extension, as the company evaluates its options and advances its restructuring plan.

As part of the process, Toys R Us has appointed Neil Taylor as chief restructuring officer to assist with navigating the CCAA proceedings while maintaining operations and continuing to serve customers, partners and employees.

Alvarez & Marsal Canada has been appointed as the CCAA monitor, with additional information on the proceedings to be posted on the monitor’s website.

Toys R Us is a national specialty retailer of toys and baby products, operating stores and e-commerce platforms across the country. The company has been serving Canadian families since 1984.

Court documents and updates on the CCAA proceedings can be accessed on Alvarez & Marsal’s website.

Photo: CNW Group/Toys R Us Canada