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‘Deteriorating’: Mastermind toy store files for creditor protection

Mastermind has stores in Coquitlam, Langley, Abbotsford, Tsawwassen, Langford and Prince George
Mastermind Toys, which sells items that include LEGO, has filed for creditor protection. (Wolf Depner/News Staff)

One of Canada’s biggest toy stores has filed for creditor protection.

Mastermind GP and Mastermind LP, owner of Mastermind Toys which operates 66 stores in Canada including 6 in B.C. 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. Its list of B.C. stores includes outlets in Coquitlam, Langley, Abbotsford, Tsawwassen, Langford and Prince George.

Alvarez & Marsal Canada Inc. was appointed as the CCAA monitor.

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Chris Campbell

About the Author: Chris Campbell

I joined the Victoria News hub as an editor in 2023, bringing with me over 30 years of experience from community newspapers in Metro Vancouver and the Fraser Valley
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