In September 2017, Toys "R" Us filed for Chapter 11 bankruptcy protection, and closed all U.S. locations in June 2018.

[1] Toys "R" Us pursued a sale of the Canadian division, including the possibility of bundling them with top-performing U.S. stores.

The Canadian unit had annual sales of $1.08 billion at the time of the filing, and had to file for protection from its creditors due to the default of its U.S.-based businesses.

[3][4] In 2021, Sunrise Records owner Doug Putman, through his Putman Investments, announced he would buy Toys "R" Us Canada (which now comprised 81 locations) from Fairfax Financial.

[5] In January 2024, the chain announced that it would revive the HMV brand in Canada (which Putman had acquired via Sunrise in 2019)[6] as a store-within-a-store concept at Toys "R" Us Canada locations, stocking music, home video, and memorabilia such as books and clothing.