Image: The Canadian Press

Toys “R” Us Inc. will seek approval to sell its Canadian unit to Fairfax Financial Holdings Ltd. after cancelling an auction for the company’s Canadian operations.

According to U.S. bankruptcy court documents, the auction received no qualified bids other than the stalking horse offer from Toronto-based Fairfax.

The holding company, which is involved in property and casualty insurance and reinsurance and investment management, has offered US$300 million for the Canadian operations of the toy retailer.

A hearing to approve the sale will be held Tuesday at a Virginia court.

Toys “R” Us has 82 Canadian stores that have stayed open despite the beleaguered retailer shuttering its U.S. and U.K. business.