Toys R Us Closing Stores in Canada (2025): Layoffs, Store List & Employee Severance Rights

On November 17, 2025, the Edmonton Journal reported that Toys “R” Us is closing dozens of stores across Canada in 2025, resulting in widespread job losses and major changes to the company’s footprint.

According to new reporting, at least 38 locations have already closed this year, another 12 stores are up for sale, and the retailer has shrunk from 103 stores down to just 40 nationwide. The closures include multiple stores in Alberta, Ontario, Quebec, Saskatchewan, and British Columbia (Edmonton Journal).

This guide explains what’s happening, which regions are affected, and what non-unionized Toys R Us employees are legally owed if they lose their jobs due to these closures.

Is Toys R Us Closing in Canada?

Yes. Multiple reports confirm that Toys “R” Us is undergoing a major contraction in 2025:

• 38 stores closed this year
• 12 stores listed for sale (with several priced at $15M+)
• Only 40 stores remain, down from 103
• Former corporate headquarters in Vaughan, Ontario has closed
• Large real estate sell-off across several provinces

The company has not commented publicly on the closures or layoffs.

Why Toys R Us Stores Are Closing

Recent reporting identifies several key reasons for the dramatic downsizing:

1. Competition from Walmart and Amazon

Toys R Us has struggled to compete with lower prices, faster shipping, and broader product selection.

2. Financial strain connected to Everest Toys

Everest Toys — owned by the same family — went into receivership, creating additional pressure on the retail business.

3. Liquidation of real estate to free up cash

At least seven properties are on the market for nearly $121 million.

4. Underperforming stores across Canada

Industry experts note that many brick-and-mortar retailers are reducing their footprint in response to changing consumer habits (HR Reporter).

5. Mixed success with “Playlab” store concept

Some Playlab stores — featuring play structures and creative spaces — have also closed or been listed for sale.

Where Toys R Us Is Closing Stores in Canada (Overview)

Toys R Us Layoffs in Canada: What Employees Need to Know

Store closures have already led to hundreds of job losses in 2025:

• 183 layoffs in Quebec
• Dozens more across Ontario, Alberta, and other provinces
• Additional layoffs from the Vaughan head office closure

Employees from Ottawa, the GTA, and other regions have already sought legal help regarding severance entitlements.

Are Toys R Us Employees Entitled to Severance Pay?

Yes. A Toys “R” Us store closure is a termination without cause under Canadian employment law.

This means non-unionized employees are owed full severance pay, which can be as much as 24 months depending on:

• Age
• Position
• Length of service
• Availability of comparable jobs
• Whether the employee worked full-time, part-time, or seasonal

Most employees are owed far more than minimum standards, even if the employer presents a “standard package.”

What Severance Must Include

A proper severance package in Canada should account for all forms of compensation, including:

• Salary
• Benefits
• Bonuses
• Commissions
• Vacation pay
• RRSP contributions
• Any other earnings

If any of these elements are missing, your severance is likely short.

Common Problems Found in Toys R Us Termination Packages

Many retail workers report issues such as:

• ESA-only severance
• Missing benefits continuation
• No bonus or vacation payout
• Short deadlines to sign
• “Temporary layoff” language without a contractual right
• No explanation of how severance was calculated

Any of these can mean you are being underpaid.

Wrongful Dismissal & Toys R Us Layoffs

A wrongful dismissal occurs when an employee is not given full severance under Canadian law.

You may have a claim if:

• Your severance seems too low
• You were pressured to sign quickly
• You were on maternity, parental, disability, or medical leave
• You worked for years but were offered only a few weeks of pay
• You were misclassified (part-time treated as casual, for example)

What To Do If You Lost Your Job at Toys R Us

1. Don’t sign your severance package before legal review
2. Gather documents (contract, ROE, termination letter)
3. Use the Severance Pay Calculator for a quick estimate
4. Document your duties and hours
5. Speak to an employment lawyer for a full assessment

Most deadlines you see in packages are not legally binding.

Frequently Asked Questions

Is Toys R Us closing in Canada?

Yes. Dozens of closures have already happened, with only 40 stores remaining.

Do Toys R Us employees get severance?

Yes — often significantly more than what the company initially offers.

Do part-time or seasonal employees get severance?

In many cases, yes. Entitlement can depend on your schedule, classification, and length of service.

Can I get EI if my Toys R Us store closes?

Yes. A store closure is a termination.

How Samfiru Tumarkin LLP Can Help With Toys R Us Layoffs

If your Toys “R” Us store has closed — or you’ve been told your job is ending — speak with an employment lawyer before you sign anything.

Samfiru Tumarkin LLP has helped over 50,000 Canadians secure the compensation they’re owed, and has earned more than 3,000 five-star reviews across Canada.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.