RioCan sues Toys “R” Us Canada over alleged unpaid rent at Lawrence Allen Centre
RioCan says it terminated a Toys “R” Us lease after the retailer missed a January rent payment, and is seeking about $4 million in a new court filing.
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By Torontoer Staff
Toys “R” Us Canada is facing a new lawsuit from landlord RioCan Holdings Inc., which says the retailer failed to pay rent for a unit at Toronto’s Lawrence Allen Centre and had its lease terminated. RioCan filed papers saying it warned the company on Jan. 5 and ended the lease on Jan. 20 after the payment was not made within seven days.
The allegation echoes several other recent claims against Toys “R” Us Canada, which has been the subject of multiple landlord and supplier suits amid store closures and asset sales. None of the claims in the new filing have been tested in court.
What RioCan is asking for
In the filing, RioCan is asking a court to force Toys “R” Us Canada to pay about $4 million. That figure includes a missed January rent payment of roughly $43,000, plus other obligations set out in the lease dating to 2035.
RioCan says the lease covered 15,580 square feet and was due to expire on Oct. 31, 2035. The document reportedly contained a clause allowing the landlord to terminate the lease and demand three months’ rent if a scheduled payment was missed and not remedied within seven days of notice. RioCan also seeks interest on unpaid rent.
How this fits into a larger pattern
The Lawrence Allen Centre claim mirrors allegations in seven other lawsuits reported last month, which together seek about $31.3 million in unpaid rent and damages. In many of those cases, Toys “R” Us Canada has not filed a statement of defence, and several leases with similar termination provisions were also ended by landlords.
When Putman Investments bought Toys “R” Us Canada and Babies “R” Us in 2021, the chain had 81 stores. The company’s website now lists 40 locations. Media reports and court notices suggest some of those listed stores have been shuttered or have unpaid rent notices posted.
Online real estate listings show some properties tied to the retailer offered for sale for as little as $1, and equipment from the company’s Concord, Ont., headquarters was auctioned before Christmas.
Responses from the companies
I do not have information to share on this topic.
Allyson Banks, Toys “R” Us Canada spokesperson
A RioCan spokesperson, Stephanie Sallah, said the company could not comment because the matter is before the court. The Lawrence Allen Centre’s tenant directory no longer lists Toys “R” Us.
Other legal actions and disputes
RioCan and affiliate RioTrin Properties previously filed suits accusing Toys “R” Us Canada of unpaid rent at locations including Brentwood Village Mall in Calgary and RioCan Centre Belcourt in Orleans, Ont. RioCan recently dropped the Brentwood claim, while RioTrin is still pursuing the Belcourt case.
In its statement of defence for the Belcourt dispute, Toys “R” Us Canada says it notified RioTrin that the store would close and offered a potential replacement tenant to assume the leases. The company says RioTrin refused the proposed assignment. Where it has responded to other claims, Toys “R” Us Canada has generally denied the allegations or disputed the amounts sought.
Parent company context
Putman Investments, based in Ancaster, Ont., owns Toys “R” Us Canada and a portfolio of retail brands including HMV, Sunrise Records, FYE, Ricki’s, Cleo and Northern Reflections. Over the holiday period, Putman closed all T. Kettle locations and earlier wound down a home goods concept called Rooms + Spaces. A sister company, Everest Toys, was placed into receivership last year.
The string of lawsuits and recent asset sales underscore ongoing financial and operational challenges at the retailer and its parent. Several claims remain unresolved in court.
What to watch next
- Whether Toys “R” Us Canada files a statement of defence in the RioCan matter.
- Outcomes of the remaining landlord lawsuits and any consolidated claims.
- Updates to store listings and whether locations cited in filings remain open or are formally closed.
For now, the RioCan filing adds another legal layer to an unfolding retail disruption. The claims remain allegations until decided by a court, and both sides will have an opportunity to make their case.
Toys R Us CanadaRioCanLawrence Allen Centreretailcommercial real estatePutman Investments
