The company behind one of the largest toy stores in Greater Victoria has filed for creditor protection.
Mastermind GP and Mastermind LP, owner of Mastermind Toys which operates a store in Westshore Town Centre in Langford, announced Nov. 24 that it sought and obtained an initial order for creditor protection under the Companies’ Creditors Arrangement Act from the Ontario Superior Court of Justice 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 company said in a statement.
“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, the company said in a statement, 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 Nov. 30.
Alvarez & Marsal Canada Inc. was appointed as the CCAA monitor.
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