Anyone who doesn’t use up their gift card for Mastermind Toys in Langford will be out of luck come Boxing Day this year.
The company is the largest independent specialty toy and children’s book retailer, but times have been tough and in November, they obtained creditor protection under the Companies’ Creditors Arrangement Act (CCAA).
Creditor protection is a means for companies who have been financially struggling to try to avoid bankruptcy.
Across Canada, there are 66 Mastermind Toys locations, all of which remain open as the company restructures and tries to pay off its debts
“Over the past several years, Mastermind Toys has faced a range of challenges including increasing competition, disruptions from the COVID-19 pandemic, and more recently a deteriorating macro-economic environment,” said Mastermind Toys in a statement.
“Despite implementing a series of operational improvements and cost reductions, and undertaking an extensive strategic review and conducting a robust sale process, the challenges facing the Company’s business have become too significant to overcome.”
The fate of the company is yet to be seen, but one impact that consumers will have to face is that as of December 24th, they will no longer be honouring gift cards in-store or online.
This change comes as Unity Acquisitions Inc. has bought out Mastermind Toys in order to keep the business afloat and attempt to make it profitable once again.
Unity Acquisitions Inc. is the same company who founded the Joe Fresh brand.
There is reportedly a sign posted on the Westshore Town Centre location’s door stating that gift cards will soon no longer be accepted and staff are being directed to advise customers of this in-store as well.
So far, this is the only change that should impact customers in the Unity Aquisitions Inc. takeover.
