One of Canada鈥檚 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鈥� Creditors Arrangement Act from the Ontario Superior Court of Justice in Toronto.

鈥淎ll 66 Mastermind Toys stores across Canada remain open for business and all the current sales and holiday promotions 鈥� including our Black Fri-Play event 鈥� will continue, in stores and online,鈥� the company said in a statement.

鈥淭he 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.

鈥淒espite 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鈥檚 business have become too significant to overcome.鈥�

During the CCAA proceedings, Mastermind Toys intends to seek the court鈥檚 authorization to commence a store closure process for an initial group of stores, the company said in a statement, while it 鈥渆xplores certain strategic alternatives for the remainder of the company鈥檚 stores.鈥�

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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