Iconic retailer faces job losses, real estate sell-off, and data breach
Toys “R” Us Canada, a staple of the country’s retail landscape for decades, is undergoing a dramatic contraction.
At least 38 stores have closed this year alone, and another 12 are up for sale. The chain now operates only 40 stores, down from 103 after billionaire Doug Putman bought and expanded the business in 2021, according to the Edmonton Journal.
Seven Toys “R” Us properties are on the market for nearly $121 million, with five more for sale without disclosed prices.
The downsizing comes amid external pressures, including the dominance of Walmart and Amazon, as well as the bankruptcy of Everest Toys, a company owned by Putman’s family, according to the Edmonton Journal.
The situation highlights the need for robust employee support during layoffs, and strategic approaches to talent retention and re-employment in an era of rapid retail transformation.
Job losses across Canada
The closures have resulted in widespread job losses. Records from Quebec’s labour department show nine store closures in that province alone led to 183 people losing their jobs as of September 2025. Nationally, at least 29 other locations in other provinces have closed in 2025, meaning the total number of affected workers is even higher, according to the report.
Employment lawyer Lior Samfiru told the Edmonton Journal that his firm has been contacted by at least 30 employees, many from the Ottawa region and Greater Toronto Area, where several stores have closed or are for sale.
Ontario’s labour ministry confirmed in the report that it was notified of the closure of the company’s former corporate headquarters in Vaughan, Ont., and activated its rapid re-employment and training service, which typically responds to layoffs of 50 or more people.
Retail challenges and changing strategies
In September 2023, the company announced it would be adding eight more stores to its portfolio in Canada, bringing the total to 103 locations, plus two standalone Babies “R” Us shops, according to the Journal.
However, industry experts said that Toys “R” Us is following a path familiar to many brick-and-mortar retailers.
“With online stores presenting more options, lower prices, and convenience, some retailers are reducing their footprints, closing underperforming locations and liquidating real estate to free up cash,” said Jenna Jacobson, associate professor at Toronto Metropolitan University, told the Edmonton Journal.
Toys “R” Us has experimented with its “Playlab” concept—stores featuring indoor play structures, creative spaces, and party rooms. The Edmonton Journal reports that while the company initially tested the concept in Burlington, Ont., that location closed, and three of the eight Ontario Playlab locations are now for sale.
Data breach adds to retailer’s woes
Toys “R” Us Canada recently notified customers of a data breach that may have compromised personal information, including names, addresses, emails, and phone numbers, according to the CBC. The company said no passwords or credit card details were involved and there is no evidence the information has been misused.
“We regret any inconvenience or concern this incident may cause you,” Toys “R” Us Canada said in an email to customers.
The company is working with cybersecurity experts and privacy regulators, and urged customers to be vigilant against phishing and spoofing attempts.
U.S. expansion contrasts with Canadian retreat
Toys “R” Us Canada has operated as an independent, Canadian-owned company since 2018.
While Toys “R” Us is shrinking its Canadian footprint, the brand is pursuing aggressive growth in the United States. According to Yahoo News, Toys “R” Us recently announced plans to more than double the number of standalone stores in the U.S., including the opening of 10 new flagship locations and 20 seasonal holiday shops by the end of 2025.
The company, now owned by private equity firm WHP Global, has also been expanding internationally in markets such as Chile, Peru, Venezuela, Morocco, Turkey, and South Korea.
“As we head into the most magical time of the year, Toys ‘R’ Us is reaching more kids and families than ever before,” said Kimberly Miller, the company’s global chief marketing officer, in a statement reported by Yahoo News.
