Independent speciality toy and children's book retailer Mastermind Toys has signed an asset purchase agreement with Unity Acquisitions.

Unity, a company owned by Canadian retail pioneers Frank Rocchetti, Joe Mimran and David Lui, will purchase the majority of Mastermind Toys store locations.

The toy retailer operates a network of 66 stores and a website.

Unity will retain a significant portion of Mastermind Toys’ employees.

Joe Mimran stated: "Mastermind Toys is a beloved Canadian retailer with a loyal customer base driven by quality, curiosity and play.

"The acquisition aligns with Unity's strategy to enhance and grow extraordinary Canadian brands. We are thrilled to have the opportunity to work with the team at Mastermind Toys and take the brand and the business to the next level."

The deal is subject to closing conditions including approval from the Ontario Superior Court of Justice for the retailer’s ongoing proceedings under the Companies' Creditors Arrangement Act.

This transaction is anticipated to be completed in January 2024.

In November 2023, the Toronto-based retailer received an order for creditor protection from the court after struggling to keep afloat amid increasing competition, disruptions from the Covid-19 pandemic and the slowing economy, reported CBC.

On 1 December, Mastermind Toys began liquidation sales at 18 of its stores after obtaining the court’s approval: nine locations in Ontario, four in Alberta, two in New Brunswick and one each in British Columbia, Nova Scotia and Manitoba.

The liquidating stores will not be part of the transaction and are also not included in the extended holiday return policy.

The retailer has confirmed that all of its stores will continue to have holiday sales and promotions.

Other than at the 18 stores undertaking liquidation sales, Mastermind Toys is rolling out an extended holiday return and exchange policy for online and in-store purchases.