TORONTO, Canada – Toys “R” Us Canada is currently facing legal action from multiple suppliers, including prominent toy manufacturers such as Spin Master Ltd., known for brands like Paw Patrol and Gabby’s Dollhouse. These lawsuits revolve around allegations of unpaid invoices related to merchandise supplied to the retail chain.

Court documents reveal that six toy supplier firms initiated lawsuits against Toys “R” Us Canada last year, seeking to recover payments for goods delivered to the retailer. Among the suing entities is Spin Master Ltd., a major player in the toy industry, which also produces popular items such as Melissa & Doug toys, Hatchimals, Ms. Rachel, and Bakugan.

Other notable plaintiffs in these lawsuits include Huffy Corp. and Dynacraft BSC, American bicycle manufacturers, as well as Kidcentral Supply, a distributor of brands like Baby Einstein and Gerber Childrenswear. Together, these companies are asserting their claims against Toys “R” Us Canada to collect overdue payments for their products.

At present, Toys “R” Us Canada and its legal representatives have not provided an immediate response to queries regarding the ongoing lawsuits. In some legal filings, the company has denied owing any funds to the suppliers, contending that the claims presented are “inaccurate and greatly exaggerated.”

This legal turmoil comes at a challenging time for Toys “R” Us Canada, which has been systematically closing down several of its retail locations. The company is additionally encountering lawsuits from landlords over unpaid rent, reflecting a broader struggle within the company amid an increasingly competitive retail environment.

The information regarding the lawsuits and the financial difficulties faced by Toys “R” Us Canada was initially published on January 22, 2025, in a report by The Canadian Press. This report highlights the ongoing challenges in the retail sector, especially for companies like Toys “R” Us, that are attempting to navigate the complex landscape of supplier relationships and financial obligations.

As the situation unfolds, stakeholders are watching closely to see how these legal battles will impact the future of Toys “R” Us Canada, particularly in light of its current store closures and financial disputes with landlords. The implications for both the company's operations and its relationships with suppliers are significant and could shape the retailer's strategy moving forward.