Mastermind Toys has announced the closure of 18 out of its 66 store locations. This decision comes as a significant blow to the beloved toy retailer, which has been a fixture in the Canadian market since its inception in 1984 by brothers Andy and Jonathan Levy.
The closures are attributed to a confluence of adverse factors that have impacted the company's operations. Owned by Birch Hill Equity Partners Management Inc., Mastermind Toys has grappled with increasing competition within the retail sector. The COVID-19 pandemic further exacerbated these challenges, disrupting business operations and consumer spending habits. More recently, the deteriorating economy has led to reduced customer spending, placing additional strain on the retailer's financial health.
In a move to salvage what it can from this difficult situation, Mastermind Toys has reached an agreement to sell the bulk of its business to Unity Acquisitions. This deal promises to retain a "significant" portion of the company's 800 employees, offering a glimmer of hope amidst the closures. Unity Acquisitions, led by Joe Mimran, Frank Rocchetti, and David Lui, is known for enhancing and growing Canadian brands, suggesting a potential positive direction for the remaining Mastermind Toys stores.
The liquidation sales at the affected locations are set to conclude by February 29, offering customers the opportunity to purchase toys and games at discounted prices. The Ontario court's approval of the liquidation process underscores the urgency of the situation, as Mastermind Toys strives to navigate through creditor protection and restructure its operations.
The store closures span across Canada, with nine locations in Ontario, four in Alberta, two in New Brunswick, and one each in British Columbia, Nova Scotia, and Manitoba. These closures mark the end of an era for many communities that have grown up with Mastermind Toys as a source of educational and entertaining products for children.
Despite the closures, Mastermind Toys has assured customers that holiday sales and promotions will continue in the remaining stores. An extended holiday return and exchange policy has been introduced, excluding the 18 stores undergoing liquidation sales, to accommodate the seasonal shopping period.
As Mastermind Toys confronts this challenging chapter, the impact of the closures will be felt by employees, customers, and communities alike. The legacy of the brand, built on a foundation of educational toys and a passion for nurturing young minds, will endure in the memories of those who walked through its doors over the past decades.
