Toys R Us Canada has obtained approval from the US and Canadian courts for the sale of its business to Ontario-based investment management firm Fairfax Financial Holdings.
Expected to be complete by this quarter, the deal is subject to customary closing conditions, such as remaining court and applicable regulatory approvals.
The transaction will strengthen the company’s stakeholders, including customers, suppliers and landlords by offering stability.
Following the acquisition, more than 4,000 members from the toy retailer family will join the Fairfax.
Toys R Us Canada president Melanie Teed-Murch said: “With this strong ownership, we will also now have the resources available to reinvigorate our stores, improve our customers’ experience and grow our market leading position.”
Established in 1983, Toys R Us Canada currently offers toys and baby products to customers across its 82 stores in the country and through its e-commerce websites Toysrus.ca and Babiesrus.ca.
Fairfax Financial Holdings chairman and CEO Prem Watsa said: “With over two decades working in Canada for Toys R Us, Melanie has the experience necessary to lead the dedicated employees of Toys R Us for the benefit of all stakeholders, kids, families and communities across Canada.
“We look forward to building for the long-term and allowing the Toys R Us team in Canada to re-invest in the business, instead of the past history of just sending earnings to the US.”