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flag Toys "R" Us Canada is collapsing, with stores dropping from 81 to 22 since 2021 due to debt, competition, and an outdated business model.

flag Toys "R" Us Canada is facing financial distress with its store count plummeting from 81 in 2021 to about 22 by early 2026, according to reports. flag The company, owned by Putman Investments, has been sued by multiple landlords over unpaid rent, including a recent claim from RioCan Holdings for nearly $4 million related to a Toronto location. flag Despite efforts to adapt through initiatives like expanding PlayLab indoor playgrounds and opening smaller stores, analysts say the company’s outdated big-box model struggles to compete with low-cost, high-volume retailers like Walmart, Amazon, and Costco. flag Retail expert Bruce Winder argues the business model is no longer viable due to low margins, seasonal sales, and intense competition, making long-term success unlikely without major innovation or niche focus.

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