It’s official: Everest Toys is in receivership.
On August 26, 2025, the day The Toy Book first broke news of the collapse of the 33-year-old toy distributor, TD Bank filed a motion for the appointment of a receiver over Everest Toys’ property. The move comes after Everest defaulted on a loan issued by TD.
The motion was granted the following day by The Honorable Justice Osborne in the Ontario Superior Court of Justice, with Spergel Inc. appointed receiver and manager in the case.
Endorsement documents reveal that as of August 20, 2025, Everest Toys owed TD Bank $16,015,726 USD and $2,760,133.23 CDN plus interest and fees. In its initial motion, TD Bank stated that it decided to end its relationship with Everest Toys in February due to failure to satisfy reporting covenants and “deteriorating financial circumstances.” In the following months, some progress was made between the two parties, but on Thursday, August 21, Everest allegedly informed TD Bank that its entire Board of Directors had resigned.
A factum filed on August 26 states that “As a result of the Board’s resignation, the Debtor no longer has any management or guidance. It is rudderless and is no longer able to meaningfully work with the Bank towards a mutually beneficial outcome.”
While the overall fallout from the Everest collapse continues, a formal bankruptcy will likely be filed by the receiver in the coming weeks.
Behind the curtain, Everest has long served as the foundation for a greater group of companies under Putman Investments, led by entrepreneur Doug Putman, son of Everest’s founders. The portfolio includes Toys “R” Us Canada, Babies “R” Us Canada, Sunrise Records, HMV, FYE, and fellow distributor Famous Toys. Recent moves include the launch of Putman Publishing in the UK and acquisitions in Canadian fashion retail. Impact on these businesses remains to be seen.
Parties interested in the case — Everest Wholesale (1322297 Ontario Inc) et al — can learn more at Spergel’s website. Miller Thomson is counsel for TD Bank, Chaitons LLP is counsel for the Receiver, and Paliare Roland LLP is counsel for Everest Toys.
