Mastermind Toys, one of Canada’s iconic specialty toy stores, has filed for creditor protection, the company announced Friday.
“The difficult but necessary decision to seek creditor protection under the CCAA (Companies’ Creditors Arrangement Act) was made following careful evaluation of available alternatives and in consultation with legal and financial advisors,” the company said in a press release.
Mastermind Toys cited a range of challenges, including increased competition, disruptions from the COVID-19 pandemic, and a deteriorating macro-economic environment, as “too significant to overcome.”
Joshua Harris, partner at insolvency trust firm Harris & Partners, says it’s important to note that this is not a bankruptcy but an alternative.
According to Harris, creditor protection is a court process for companies that have over $5 million in debt and implements a ‘stay of proceedings’ to stop creditors from any sort of collections. “During this time, while they put together a plan, they can’t be pursued by landlords or trade creditors like suppliers,” said Harris in a phone interview with CTVNews.ca.
The Canadian toy retail company said they intend to seek the court’s permission to commence the store closure process for an “initial group of stores,” while exploring “strategic alternatives” for the remaining stores.
“The Monitor is currently engaged with a potential going concern purchaser, which would see the purchaser acquire certain assets of the Mastermind Entities, including a large number of Mastermind LP stores,” a company representative told CTVNews.ca in an email. “The Monitor” refers to a court-appointed, independent third party that’s licensed to act as a trustee.
Harris says a potential could be using this protection to get out of leases to consolidate their business into less stores.
“They’ve got over 60 stores so they’ve got some leases they want to get out of possibly in very expensive malls, possibly in cities that you don’t have high traffic,” said Harris.
Harris says similar cases include Sears Canada, Toys R Us, and the McEwan Group.
“We have to wait for that initial court report to see what actually is going to come out of it, what their real plan is.”
According to Mastermind Toys, they expect to seek additional relief from the court at a comeback hearing on Nov. 30.
Mastermind Toys said all 66 stores across Canada will remain open and holiday promotions will continue online and in store.
Mastermind Toys opened its first store in Toronto in 1984 and was founded by brothers Andy and Jon Levy, according to the company’s website.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.
The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.
Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.
In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.
On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.
The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
