Toys “R” Us Canada: one dollar of assets against $302 million of claims

Toys “R” Us (Canada) Ltd. went into bankruptcy owning, by its own statement of affairs, one dollar. The statement, verified on October 2, lists a single asset, $1.00 of cash on hand, and $0.00 on every other line from receivables and inventory to intellectual property, real property and securities. Against it are liabilities of $302,191,064.75, spread over 559 numbered lines, and a deficiency of $302,191,063.75, per the Statement of Affairs (Form 78), Oct. 2, 2026, package pp. 4–5, 44–45.

The trustee's letter to creditors says the company filed its assignment on October 2, with The Fuller Landau Group Inc. as licensed insolvency trustee, and that the official receiver accepted it on October 5, per the Trustee's letter to creditors, Oct. 9, 2026, package p. 1. The official receiver's certificate gives the date and time of bankruptcy as 9:34 a.m. that day, in estate No. 31-3432676, Toronto division, and sets the first meeting of creditors for 2:00 p.m. on October 23, by Zoom, with the trustee as chair, per the Certificate of Appointment, Oct. 5, 2026. Justice J. Dietrich's CCAA termination order of August 13 had authorized the assignment from the end of the CCAA, "but not required" it, and authorized The Fuller Landau Group Inc. "or another trustee-in-bankruptcy determined by the Applicant and the Monitor" to act, per the CCAA Termination Order, Aug. 13, 2026, para. 15(a), (c).

The notice makes the trustee's appointment "subject to affirmation by the creditors" or their substitution of another trustee, and required a creditor who wanted to vote to file a proof of claim, and where necessary a proxy, before the meeting, per the Notice of Bankruptcy, First Meeting of Creditors (Form 68), Oct. 9, 2026, paras. 1–3, package p. 3. No trustee's report, minutes of the meeting called for October 23 or record of inspectors is in the record.

Three ticked boxes

The form asks the bankrupt to give the reasons for its financial difficulty, to "Select all that apply and provide details." Three boxes are ticked: "Negative market conditions," "Competition" and "Poor Financial Performance." No details are given. Of the liabilities, $1.00 is listed as secured and $302,191,063.75 as unsecured, with nothing preferred or contingent, per the Statement of Affairs (Form 78), Oct. 2, 2026, package p. 4. It was verified by the officer who, as the company's chief restructuring officer, swore the affidavit supporting its CCAA application in February, per the Statement of Affairs (Form 78), Oct. 2, 2026, package p. 45 and the Affidavit of the chief restructuring officer, Feb. 2, 2026, para. 2.

The parent's three lines

The one secured line belongs to 262 Holdings Inc., formerly 2625229 Ontario Inc., which owned 100% of the company and had "the same primary directors and officers," the monitor's fourth report said in August; the CCAA's interim financing, up to $15 million from April 1, was "made available by 262," per the Fourth Report of the Monitor, Aug. 5, 2026, paras. 1.3–1.5. In the affidavit that opened the CCAA, the chief restructuring officer described 262 as "the Applicant's primary secured creditor and sole shareholder, and the proposed DIP Lender." It was owed approximately $17,000,000 on two loans advanced in January 2025 and secured on January 27, 2025, the affidavit says, and once an earlier asset-based and term loan was repaid on December 31, 2025, "the 262 Loan remains as the Applicant's first lien secured creditor." The affidavit also says 262's sole shareholder was the company's sole director, per the Affidavit of the chief restructuring officer, Feb. 2, 2026, paras. 3, 15–16, 24–25.

In the statement, 262 appears on three lines, each at 1430 Cormorant Road in Ancaster, Ontario. Line 14 is a general security agreement, with the date January 27, 2025: $17,600,000.00 in all, of which $1.00 is shown as secured against asset No. 101, the dollar of cash on hand, and $17,599,999.00 as unsecured, the estimated deficit from the security. Lines 13 and 15 are listed as accounts payable, for $125,271,000.00 and $8,428,675.65, and the statement gives no details for either, per the Statement of Affairs (Form 78), Oct. 2, 2026, package pp. 5–6.