Toys R Us Canada has reached an agreement to sell 10 store leases an Ontario-based numbered company owned by the chain’s current owner Doug Putman.

The proposed agreement also covers inventory, equipment, logistics contracts and bank accounts marketed as part of a broader asset-sale process undertaken while the retailer remains under creditor protection.

The pending transaction is one of three proposed asset-sale deals disclosed in Ontario Superior Court of Justice (Commercial List) filings. The retailer has also agreed to sell the Toys R Us Canada and Babies R Us Canada names, along with about 150 trademarks, website domains, social-media accounts and the Geoffrey the Giraffe mascot rights, to U.S.-based Ad Populum.

A third proposed agreement would see Fox Group Jumbo Canada acquire the lease for the retailer’s 48,000-square-foot store at the Vaughan Mills mall north of Toronto.

The retailer launched a sale process in April, approaching 90 potential buyers, after entering creditor protection in February due to a heavy debt burden.. Eleven parties submitted non-binding letters of intent, leading to bids for the company’s assets and intellectual property, court-appointed monitor Alvarez & Marsal in its latest report. The Ad Populum and Jumbo transactions are expected to close in July, while no closing date has been disclosed for the Putman deal.

Toys R Us Canada has continued to shrink its store network during the restructuring process. After closing numerous locations over the past two years; while in creditor protection, has announced plans to shutter additional stores in Saskatoon, St-Bruno, Que., and Kingston, Ont., leaving a reduced workforce of about 260 employees.

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

Photo: CNW Group/Toys R Us Canada

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