Toys “R” Us Canada is going through one other lawsuit from a landlord that claims it terminated the retailer’s lease after it didn’t pay lease.
RioCan Holdings Inc. says in a brand new court docket submitting that the toy retailer chain didn’t pay lease final month for an area it occupied on the Lawrence Allen Centre in Toronto.
After allegedly warning Toys “R” Us Canada on Jan. 5 that it might finish its leases if the retailer didn’t make a cost inside seven days, RioCan mentioned in a court docket submitting that it adopted by way of with its risk on Jan. 20.
The claims haven’t been examined in court docket.
Nevertheless, the unpaid lease allegations mirror claims contained in seven different lawsuits The Canadian Press reported final month had been filed in opposition to the retailer during the last 12 months.
Requested for remark in regards to the newest lawsuit, Toys “R” Us Canada spokesperson Allyson Banks mentioned Monday in an e-mail, “I would not have data to share on this matter.”
Stephanie Sallah, a RioCan spokesperson, mentioned in an e-mail that the corporate additionally couldn’t remark as a result of the matter is earlier than the court docket. The Lawrence Allen Centre web site now not lists the retailer as a tenant.
Toys “R” Us Canada had 81 shops when it was bought alongside Infants “R” Us by Putman Investments in 2021. Its web site now lists 40 shops. It’s unclear what number of are literally in operation as a result of media stories have prompt some listed have now been shuttered or have unpaid lease notices affixed to their doorways.
On-line listings present a few of its properties have been put up on the market for as little as $1 and trailers, forklifts and different tools from its Harmony, Ont., headquarters had been auctioned off simply earlier than Christmas.
The seven lawsuits reported final month quantity to about $31.3 million in unpaid lease and different damages.
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These claims have additionally not been examined in court docket and in lots of the instances, Toys “R” Us Canada has not filed an announcement of defence. The place it has responded, the corporate has largely denied the allegations of its suppliers and brought situation with the amount of cash being demanded.
Within the newest lawsuit in opposition to the corporate, RioCan is asking a court docket to pressure Toys “R” Us Canada to pay it about $4 million. That features the missed January lease cost of roughly $43,000, plus thousands and thousands in different obligations outlined within the toy retailer’s lease.
The business actual property firm says the lease lined 15,580 sq. toes and was on account of expire on Oct. 31, 2035.
It had a provision permitting the owner to terminate the lease and demand three extra months of lease, if Toys “R” Us Canada didn’t pay lease as scheduled after which didn’t treatment the state of affairs inside seven days of being notified, RioCan mentioned in its court docket submitting.
Curiosity would should be lined on any unpaid lease, RioCan added.
Most of the leases on the coronary heart of the seven different lawsuits Toys “R” Us Canada is going through have related provisions, which had been additionally used to terminate the retailer.
A type of lawsuits was filed by RioCan Holdings and affiliate RioTrin Properties, which accused Toys “R” Us Canada of not paying lease at Brentwood Village Mall in Calgary and RioCan Centre Belcourt in Orleans, Ont., respectively.
RioCan dropped the Brentwood declare lately however affiliate agency RioTrin remains to be pursuing the Belcourt allegations.
Toys “R” Us has requested for the Belcourt case to be dismissed and says it notified RioTrin upfront that the shop could be closing and introduced a possible alternative tenant to whom it might assign the leases.
RioTrin refused to assign the alternative tenant the leases, Toys “R” Us Canada mentioned in its assertion of defence.
Toys “R” Us Canada proprietor Putman Investments is predicated in Ancaster, Ont., and can be behind HMV, Dawn Information, FYE, Ricki’s, Cleo and Northern Reflections. Over the vacations, it closed all of its T. Kettle shops and earlier than that, shuttered a short-lived residence items enterprise known as Rooms + Areas.
Its sister firm Everest Toys, began by the daddy of Putman Investments chief Doug Putman, was compelled into receivership final 12 months.
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