A group of retailers including veteran Canadian entrepreneur Joe Mimran has agreed to buy beleaguered toy store franchise Mastermind Toys, the companies said Monday.
Unity Acquisitions Inc., a company owned Mimran, Frank Rocchetti and David Lui, has agreed to buy the toy store chain after it obtained creditor protection last month.
Under the deal, Unity will buy most of the chain’s 66 stores and keep them running through the holiday season.
Most Mastermind employees will continue working for the company, the news release said.
The deal, subject to regulatory approval, will see holiday sales maintained this season, with liquidation sales continuing at 18 stores.
"Mastermind Toys is a beloved Canadian retailer with a loyal customer base driven by quality, curiosity and play," Mimran said in a news release.
"The acquisition aligns with Unity's strategy to enhance and grow extraordinary Canadian brands. We are thrilled to have the opportunity to work with the team at Mastermind Toys and take the brand and the business to the next level."
Mastermind obtained creditor protection on Nov. 24. Its parent company called the move "difficult but necessary” as it struggled to rebound from the COVID-19 pandemic amid increased competition and a worsening economy.
At the time, the company said it would maintain sales through the holidays, but would begin liquidate underperforming stores.
The company had also hinted at a possible buyer, indicating the unnamed source had recently “accelerated negotiations.”
With files from The Canadian Press