MASTERMIND TOYS COMMENCES PROCEEDINGS UNDER THE CCAA
All 66 Mastermind Toys stores across Canada remain open for business
TORONTO, Nov. 24, 2023 /CNW/ - Mastermind GP and Mastermind LP (the "Company" or "Mastermind Toys"), the largest independent specialty toy and children's book retailer in Canada, announced today that it sought and obtained an Initial Order on November 23, 2023 for creditor protection under the Companies' Creditors Arrangement Act (the "CCAA") from the Ontario Superior Court of Justice (Commercial List) in Toronto.
All 66 Mastermind Toys stores across Canada remain open for business and all the current sales and holiday promotions (including our Black Fri-Play event) will continue, in stores and online.
The difficult but necessary decision to seek creditor protection under the CCAA was made following careful evaluation of available alternatives and in consultation with legal and financial advisors. Over the past several years, Mastermind Toys has faced a range of challenges including increasing competition, disruptions from the COVID-19 pandemic, and more recently a deteriorating macro-economic environment. Despite implementing a series of operational improvements and cost reductions, and undertaking an extensive strategic review and conducting a robust sale process, the challenges facing the Company's business have become too significant to overcome.
During the CCAA proceedings, Mastermind Toys intends to seek the Court's authorization to commence a store closure process for an initial group of stores, while it explores certain strategic alternatives for the remainder of the Company's stores. Mastermind Toys expects to seek additional relief from the Court at a comeback hearing on November 30, 2023.
Alvarez & Marsal Canada Inc. was appointed as the CCAA Monitor. Additional information related to the CCAA proceedings will be available on the Monitor's case website at www.alvarezandmarsal.com/Mastermind.
Mastermind Toys is Canada's Authority on Play and is the country's largest specialty toy and children's book retailer, with 66 stores coast-to-coast and a wonder-filled website. It has a proud 39-year heritage of being the educational toy store, supporting kids, parents, grandparents, educators and gift givers by offering a curation of toys and books that help with the development of a child's mind, body and expression. Its purpose is to inspire generations of lifelong learners through the power of play, with a philosophy that "Play is Kids' Work."
For further information:
Nina Godard
Edelman Smithfield
[email protected]
416-455-6324
SOURCE Mastermind Toys
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