Mastermind Toys, a specialty toy and children's book retailer based in Toronto, has obtained an initial order for creditor protection from the Ontario Superior Court of Justice. The company cites increasing competition, disruptions from the COVID-19 pandemic, and a deteriorating macroeconomic environment as the reasons for filing for protection. While all 66 stores across Canada will remain open for business, the company plans to immediately liquidate and close some underperforming stores. It is also exploring alternatives for the business with an unnamed buyer. If a transaction with the buyer is not finalized soon, Mastermind will have to commence a full liquidation of all its retail locations. The company owes $22.2 million to merchandise vendors and $2.6 billion to logistics and other vendors. It also has about $5.6 million in outstanding gift card liabilities. Mastermind's history dates back to 1984, and it currently operates an e-commerce platform and employs approximately 800 non-unionized workers. [63e77691]