Canadian toy distributor Everest Toys has reportedly shuttered its doors following business disruptions caused by a shifting retail landscape and the ongoing global trade war.

As reported by The Toy Book yesterday, staff members sounded the alarm late last week that a closure was imminent, and they were subsequently locked out of Everest’s headquarters in Hamilton, Ontario. But the distributor’s 94,000-square-foot warehouse and headquarters had been on the market for 209 days and still remain up for sale. 

Everest is owned and operated by Putman Investments, which founded the distributor in 1992. If it’s closed for good, this disruption has the potential to impact thousands of specialty retailers across North America and the supply chains of major clients including Hasbro, Mattel, Blokees and The LEGO Group. 

The Toy Book’s sources suggest that the sudden closure was caused by a bank-initiated shutdown after Everest broke loan covenants with its creditors. This leaves room for the toyco to execute a wider restructure, either by returning to market under a new name or being absorbed by other Putman-owned companies, such as Toys “R” Us Canada, HMV and Sunrise Records. 

The current retail landscape hasn’t been kind to Putman’s operations in recent months. The family-owned company closed several TRU and Sunrise Records storefronts across Canada this year in an effort to get out of unprofitable locations.