Toys 'R' Us Canada has received court approval to split its business among three buyers, according to a ruling on June 22, 2026. The decision allows the toy retailer to divide its assets and operations, with Fairfax Financial Holdings among the acquirers.
The plan, approved by the Ontario Superior Court of Justice, involves the sale of Toys 'R' Us Canada's stores, inventory, and intellectual property. The three buyers include Fairfax Financial, a Toronto-based holding company, and two other undisclosed entities.
Toys 'R' Us Canada filed for creditor protection in 2025 amid financial struggles. The court-approved split aims to preserve jobs and maintain operations across the country. The deal is expected to close by late 2026, pending regulatory approvals.
Fairfax Financial, led by Prem Watsa, has a history of acquiring distressed assets. The company did not disclose the financial terms of the acquisition. Toys 'R' Us Canada operates over 80 stores nationwide.
