Toys“R”Us is preparing for a return to Canadian retail through a partnership with Staples Canada, which plans to introduce dedicated Toys“R”Us and Parties“R”Us shop-in-shops across close to 300 stores nationwide. The rollout begins November 14 in Richmond Hill, Ontario, with expansion planned throughout 2027.
The announcement follows widespread Toys“R”Us store closures, creditor protection and the bankruptcy of its former Canadian operating company. The partnership will bring the familiar toy brand to shoppers through Staples’ existing retail network, marking a significant departure from the large-format stores traditionally associated with Toys“R”Us.
Staples has been named the official and exclusive Canadian retail partner for Toys“R”Us Canada and the new Parties“R”Us concept. The arrangement involves Next Century Ipco Can ULC, which holds the Canadian trademarks and associated intellectual property.
Toys“R”Us Shop-in-Shops to Expand Across Canada
The first location will open Saturday, November 14, inside the Staples store at 45 Red Maple Road in Richmond Hill, north of Toronto. A grand-opening celebration will include make-and-take activities, special offers and character appearances, according to the November 3 announcement.
The new retail areas will feature curated and exclusive toy assortments alongside products for birthdays, holidays and other celebrations. Parties“R”Us will offer balloons, party goods, seasonal merchandise and licensed party products, broadening the offering beyond toys and games.
The partnership also includes online shopping through staples.ca. Additional shop-in-shops are planned throughout 2027, although Staples has not announced a store-by-store schedule or disclosed how much space the concepts will occupy.
Jens Cermak, CEO of Staples Canada, described the arrangement as an opportunity to bring Toys“R”Us to families through an established national retailer. Staples operates close to 300 stores and employs approximately 11,000 people across Canada, according to the company.
Cermak said Staples is proud to help develop the next chapter for a brand familiar to generations of Canadian families. The retailer expects the partnership to create new shopping opportunities through its physical stores and digital platform.
A Different Retail Model for Toys“R”Us
The partnership represents a substantial change from Toys“R”Us Canada’s former retail format. The chain operated 22 stores when it entered creditor protection in February 2026, with an average footprint of approximately 45,000 square feet, according to court documents.
Under the new arrangement, Toys“R”Us will occupy dedicated areas within existing Staples stores, potentially providing wider geographic reach without rebuilding a separate network of large-format toy stores. Although close to 300 shop-in-shops would substantially increase the number of retail locations carrying the brand compared with the former chain, the companies have not disclosed enough information to compare selling space or sales capacity.
Joel Weinshanker, CEO of Next Century, said the partnership would extend the brand’s reach through Staples’ national network. In the announcement, he said the company expects to be “in more stores than ever before,” referring to the expanded number of locations where customers will encounter Toys“R”Us.
The addition of Parties“R”Us could create shopping occasions beyond the traditional holiday toy-buying season. Its celebration-related merchandise gives the partnership a year-round component, including birthdays and other events.
A New Chapter Following Store Closures and Restructuring
The revival follows the restructuring of Toys“R”Us Canada’s former operating business, which entered creditor protection under the Companies’ Creditors Arrangement Act on February 3, 2026. The chain had already closed dozens of stores, leaving a substantially smaller physical network.
A court-supervised sale process divided the company’s assets among several purchasers. According to Alvarez & Marsal, the court-appointed monitor, Ad Populum acquired the intellectual property in a transaction completed July 13, while a company associated with retail entrepreneur Doug Putman acquired most of the remaining business and assets on July 10. The Vaughan Mills lease was sold separately to Fox Jumbo, with that transaction closing July 8.
The former operating company’s restructuring proceedings concluded October 5, when Toys“R”Us (Canada) Ltd. made an assignment in bankruptcy. By then, the brand rights had been separated from the business and its retail leases.
The November 3 announcement identifies Next Century Ipco Can ULC as the owner of the Canadian trademarks and associated intellectual property. The precise corporate relationship between Next Century and Ad Populum has not been established in the available records, while Staples’ role is that of exclusive Canadian retail partner.
As Retail Insider reported in June, the separation of the brand and operating assets left questions about the future of the remaining standalone stores. The new Staples partnership does not establish whether those locations will continue under existing or renewed licensing arrangements.
Former Toys“R”Us locations are also being repurposed for other retailers. Retail Insider reported November 2 that Primaris REIT has negotiated replacement tenant deals for six former Toys“R”Us locations, representing approximately 145,000 square feet, with incoming retailers expected to take possession during 2027.
Staples Expands Its Offering to Canadian Families
For Staples Canada, the partnership introduces merchandise categories that could attract shoppers beyond its traditional office supplies, school products, furniture and technology offerings. Toys and games provide opportunities around birthdays, school holidays and the year-end shopping season, while party supplies could encourage more frequent visits.
Parties“R”Us may be particularly relevant to that strategy. Balloons, decorations and licensed party merchandise are purchased throughout the year, potentially providing a different pattern of demand from toys, which tend to have a pronounced holiday selling season.
The shop-in-shop model also allows Staples to broaden its merchandise offering within an existing store network. Its commercial impact will depend on the space allocated to the concepts, merchandise selection, customer demand and the economics of the partnership.
National Rollout Planned Through 2027
The Richmond Hill opening will provide the first public look at how Toys“R”Us and Parties“R”Us will operate together inside Staples. The companies have described dedicated retail areas and curated assortments, but have not released detailed store plans or confirmed subsequent opening dates.
Staples intends to extend the concept across Canada throughout 2027, potentially reaching communities that could not support a standalone Toys“R”Us location. The rollout will test how the established toy brand performs in a smaller format and whether party merchandise can generate repeat visits.
The first location opens November 14 in Richmond Hill, with the broader expansion planned for the following year. The performance of those locations will help establish whether the new model can support a lasting national presence for Toys“R”Us in Canada.
