Once again bankruptcy | Coco Village sold to Ontario-based Mastermind Toys

A year after its first bankruptcy, Coco Village filed for bankruptcy again. This time, however, the founders lost control of the company specializing in online sales of children’s furniture and toys. It ended up in the hands of Ontario-based toy chain Mastermind Toys for an undisclosed sum.

The company plans to hire “the majority” of the remaining 18 employees, according to documents filed with the High Court. Its plan also ensures compliance with Coco Village’s contracts with customers, “including gift cards issued and in circulation.”

In an email to Press, Mastermind CEO Kartik Rathod did not specify whether he plans to open stores in Quebec, where the company is currently absent. “Right now, we’re focusing on business integration and order fulfillment,” he says.


Kartik Rathod, CEO, Mastermind Toys

Mastermind has 48 stores in English Canada.

Insolvent again

Ontario has come forward as part of a search for potential buyers for the Coco Village assets, seeking a buyer with the help of receiver André Gabbaye.

The company’s founders, Dominik Larose and Yoann Desrosiers, hastened its downfall by demanding repayment of more than $1 million in debt from another company, Coco Village, in March.

This scenario has come true for the second time, as in April 2023 the company already went bankrupt for the first time, after an appeal was filed against it by the same company from Larose and Desrosiers.

The partners then founded a new company which, with the help of a group of external investors, purchased the assets of a distributor of children’s goods under the same name.

In June, Coco Village started again on new bases. But according to court documents, the following month she found herself in default on payments to her creditors … including Larose and Desrosiers.

In March, Coco Village bosses reiterated the 2023 scenario and demanded that the company pay off the company’s 1 million debt to its own company.

The company and its receiver reviewed 14 bids and chose Mastermind’s bid.

The trustee’s plans, approved by the High Court on April 9, call for repayment of a group of creditors who allowed Coco Village to resume operations last year.

Serial bankruptcies

In August 2023 Press explained how the company’s financial problems had caused long delays in receiving goods that customers had ordered1.

Our investigation also revealed that the two owners already had several bankruptcies.

Today is the fourth time that Yoann Desrosiers has brought the company into bankruptcy. In 2018, the production company TBOS Group, which he chaired, caused a loss of almost 3 million to its creditors, including theaters and many members of the Union of Artists (UDA).

Desrosiers and Dominik Larose, partners and spouses, have also experienced personal bankruptcy in the past. They did not respond to an email from Press.

1. Read “Businesses in trouble, parents discouraged”

Find out more

  • 3.3 million
    Coco Village’s total debts before its new bankruptcy and the purchase of its assets by Mastermind Toys

    Source: High Court

Source link

Leave a Comment