Toys “R” Us Canada, once a 103-store national staple, has shrunk to just 40 locations as dozens of stores close or go up for sale. Research from the Edmonton Journal and Financial Post shows at least 38 closures this year, with several properties listed for tens of millions of dollars. The chain’s retrenchment comes amid intensifying competition from Amazon and Walmart, pressure on mall-based retail, and financial strain tied to the bankruptcy of Everest Toys, a company owned by Doug Putman’s family.

The closures have led to significant layoffs: Quebec alone saw 183 job losses from nine store closures in 2025, with more across Ontario and other provinces. This mirrors broader challenges in the Canadian retail job market, where store closures, e-commerce growth and rising operating costs continue to reduce front-line retail employment.

Industry experts say big-box toy stores struggle to stand out in an era where consumers expect experience-based shopping. While Canadian toy sales are actually growing — up 18% in early 2025 — smaller specialty and hobby stores are capturing that demand. Analysts suggest Toys “R” Us may survive, but only by “right-sizing” and shifting toward more interactive, experiential retail models.

Have you been laid off by Toys ‘R’ Us in Canada? Contact our employment lawyers today. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.

Zac Delaney’s original article, “Toys 'R' Us Canada closes at least 38 stores this year, puts another 12 up for sale” was published in Edmonton Journal on November 16, 2025. Read the Full Edmonton Journal story.

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