Fairfax agrees to purchase Toys R Us Canada

The investment firm, Fairfax Financial Holdings Ltd., has signed an agreement to buy the Canadian unit of Toys “R” Us Inc. for about C$300 million ($237 million).

The ‘stalking horse’ bid allows other potential buyers to enter competing proposals by Monday, according to a U.S. bankruptcy court filing submitted by Toys “R” on Thursday.

The deal would allow Toys R Us’ Canadian arm to continue trading, following Fairfax’s acquisition of athletic equipment maker Performance Sports last year.

Earlier this week, Toys R Us rejected MGA founder, Isaac Larian’s bid to keep some of the company’s European stores open.