Mastermind Toys Obtains Creditor Protection, to Close Some Stores
Canadian retailer Mastermind Toys will close some stores after obtaining bankruptcy protection.
An Ontario judge has issued an interim court order under the Companies’ Creditors Arrangement Act. The order granted Mastermind a stay of proceedings that protects the company’s entities from creditors and legal action until a November 30 comeback hearing.
In a news release, Mastermind said it will seek the court’s permission to close an initial group of stores while exploring “certain strategic alternatives” for the remainder. Mastermind attributed the “difficult but necessary decision” to challenges that have become “too difficult to overcome.”
Those challenges include increasing competition, disruptions from the COVID-19 pandemic, and, more recently, a deteriorating macro-economic environment.
Mastermind owns and operates 66 stores across Canada. Most are located in Ontario (35) and Alberta (13) with the bulk in power centres and plazas, according to a report from court monitor Alvarez & Marsal Canada.
Alvarez & Marsal is in talks with a potential purchaser of several stores, the Globe and Mail reported while citing an affidavit submitted to the court.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.