It was founded by the Canadian franchise of U.S. toy retail chain Toys "R" Us; as of 2018, however, it operates independently and is based in Concord, Ontario, and throughout Canada.

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.

[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.