Toys R Us Canada Finds a Buyer
Toys R Us has found a buyer for its Canadian arm, per BWTF.com’s report on a release by Bloomberg. After MGA Entertainment’s failed bid to purchase the 80-plus Canadian stores along with 200 of the better-performing US locations, Toys R Us seems to have found a better deal with Fairfax Financial Holdings Ltd.
Bloomberg reports that the Canadian firm similarly acquired Performance Sports Inc., an equipment manufacturer, last year. Fairfax may still be outbid by another firm or consortium, but what the deal means for certain is that the Toys R Us Canadian arm has a buyer.
The name “Fairfax” is said to be short for “fair, friendly acquisitions”, a name the firm took on in 1987. Opposed to short-selling schemes, the company is at least in theory a polar opposite to the predatory public image of companies like Bain Capital, one of the firms involved in Toys R Us’s 2005 buyout.
Under the deal, Canadian stores could simply continue operating uninterrupted and without any change in branding.
While Toys R Us has attempted to sell some of its highest-performing locations in the US – 200 of the more than 800 locations that exist – there’s been no word of any buyer as the stores shamble through their liquidation process and other companies eye the retail vacuum they will leave.