A Mastermind Toys shop in Toronto's Rosedale neighborhood on Nov. 24. The Canadian toy retailer reveals a business majority sale agreement with Unity Acquisitions Inc. (Photo: Tess Ha/CBC)
Canadian toy retailer Mastermind GP Inc. has finalized an agreement to sell a significant portion of its business to Unity Acquisitions Inc., a company led by Joe Mimran, Frank Rocchetti, and David Lui. The Toronto-based chain, currently facing financial challenges exacerbated by increased competition, pandemic-related disruptions, and economic downturns, disclosed the deal on Monday.
While the financial details of the agreement were not disclosed, the asset purchase deal is still subject to court approval, with the closing anticipated in January. The acquisition encompasses the majority of Mastermind Toys store locations, offering continuity to a substantial portion of its 800 employees.
Although the precise number of job losses resulting from store closures remains undisclosed, the company has expressed its commitment to retaining a significant workforce. Despite declining an interview, a Mastermind Toys representative stated that the acquisition aligns with Unity's strategy to enhance and expand exceptional Canadian brands.
Joe Mimran, recognized for founding Club Monaco and contributing to the success of the Joe Fresh brand, expressed enthusiasm about collaborating with Mastermind Toys' team to elevate the brand and business to new heights.
Unity Acquisitions, known for its involvement in the fashion retail sector, surprised industry observers with its acquisition of a toy retailer. Retail Insider Media publisher Craig Patterson noted that Unity's diverse holdings and successful leadership team hint at a strategic move to diversify the company's portfolio.
Mastermind Toys, owned by Birch Hill Equity Partners Management Inc., sought creditor protection on November 24, the crucial shopping day known as Black Friday. Faced with increasing competition, pandemic disruptions, and economic challenges, the company has been attempting to sell its business.
The decision to close 18 of its 66 stores, affecting locations in Ontario, Alberta, New Brunswick, British Columbia, Nova Scotia, and Manitoba, was granted approval by an Ontario court. The liquidation sales are mandated to conclude by February 29.
Despite the store closures, Mastermind reassures customers that holiday sales and promotions will continue. Additionally, the company has introduced an extended holiday return and exchange policy for online and in-store purchases, excluding those made at the stores undergoing liquidation sales.
Established in 1984 as an educational software store, Mastermind's evolution into a toy retailer specializing in educational toys occurred in the 2000s. The sale to Unity Acquisitions represents a strategic move for both parties amidst the evolving dynamics of the retail landscape.
