The Toronto-based retailer, which has about 800 employees, said it plans to liquidate and close an unspecified number of underperforming stores immediately, while exploring a potential acquisition that would see an already-identified buyer run the remaining business. If a deal doesn’t materialize, the company will close all its retail locations, according to a court filing. All of Mastermind’s stores and its e-commerce platform currently remain open, the company said in a release. (The Logic)

Talking point: Mastermind, owned by private equity firm Birch Hill, said it has struggled in a competitive toy industry, and debt it took on during the COVID-19 pandemic. It owes nearly $50 million to secured and unsecured creditors, including its parent company, according to a court filing, as well as $5.6 million in outstanding gift cards. The company said it has reported a net loss for six years straight, aside from 2021, and it has not generated enough cash to pay down the $6.25-million loan taken on during the pandemic. It’s the second Canadian retailer to undergo creditor protection proceedings amid the crucial holiday shopping season. Furniture seller Bad Boy filed a notice of intention to make a proposal and was granted the ability to start liquidation sales.