Mastermind Toys was facing significant financial challenges as a result of declining sales and increased competition, which were further exacerbated by the COVID-19 pandemic. On November 23, 2023, Mastermind LP, a subsidiary of Birch Hill Equity Partners ("Birch Hill"), obtained protection from its creditors and certain relief under the Companies Creditors Arrangement Act (CCAA). Alvarez & Marsal Canada Inc. was the court-appointed monitor of Mastermind LP.
On December 1, 2023, Unity Acquisitions Inc. ("Unity" or the "Buyer"), an entity owned by Joe Mimran, Frank Rocchetti and David Lui, entered into an asset purchase agreement with Mastermind LP and Birch Hill to purchase the majority of the Mastermind Toys stores, remaining inventory and employees.
On January 15, 2024, the Buyer completed its acquisition of the Mastermind Toys assets, as approved by the Ontario Superior Court of Justice (Commercial List).
Fasken advised Unity, and its new wholly-owned subsidiary, Mastermind Toys Inc., in connection with the transaction, with a team led by Krisztián Tóth, Dylan Chochla and Claire Gowdy and including Mitch Stephenson (Insolvency); Alexis Shamess and Pantea Eshraghi (Corporate); and Jon Holmstrom, Nathan Gates, and Rabab Asif (Banking and Finance).
Jurisdiction
- Ontario
