Educational toy retailer Mastermind GP Inc., which was placed into receivership last month, has a deal to sell a majority of its 66 stores.
Toronto-based Mastermind Toys, Canada's largest independent specialty toy and children's book retailer, said it has entered into an asset purchase agreement with Unity Acquisitions Inc., owned by Canadian retail pioneers Joe Mimran, Frank Rocchetti and David Lui. No price was disclosed.
Mimran co-founded Club Monaco in 1985 and developed the popular private clothing label Joe Fresh, which is sold in Loblaw Companies Ltd. stores.
"Mastermind Toys is a beloved Canadian retailer with a loyal customer base driven by quality, curiosity and play," said Mimran in a statement. "The acquisition aligns with Unity's strategy to enhance and grow extraordinary Canadian brands."
Unity Acquisitions was established in 2023 and recently acquired Kit and Ace and Casca Footwear. Mimran and Rocchetti oversaw the growth of Tilley Endurables Inc., expanding the hat brand to an apparel brand available in Canada, the United States and the United Kingdom.
The Mastermind transaction is subject to certain closing conditions, including approval under ongoing proceedings under the Companies' Creditors Arrangement Act, but is expected to close in January.
Founded by brothers Andy and Jon Levy, Mastermind began in 1984 in a 300-square-foot shop in Toronto that sold educational software for home computers. It has long been considered an alternative to traditional toy stores.
Under the terms of the deal, 18 Mastermind stores will close, including nine in Ontario, four in Alberta, one in Nova Scotia, two in New Brunswick, one in Manitoba and one in British Columbia.