Mastermind Toys obtains creditor protection

Mastermind Toys, the specialty toy and children’s book retailer, has obtained creditor protection under the Companies’ Creditors Arrangement Act from the Ontario Superior Court. All 66 stores across Canada remain open for business, however the company was forced to seek creditor protection after several years of challenges including increasing competition, disruptions from Covid, and what it calls “a deteriorating macro-economic environment.”

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 strategic alternatives for the remaining outlets.