Everest Toys Placed in Receivership After Collateral Shortfall and Board Resignations

Everest Toys (1322297 Ontario Inc.), an Ancaster, Ontario–based distributor of toys, games, and gifts, was placed into receivership on August 27, 2025 on application by TD Bank, owed approximately C$25 million.

The company has operated for more than three decades, supplying novelty products such as Crazy Forts and other toy and gift lines to major retailers including Toys R Us and For Your Entertainment. Over that period, Everest established itself as a recognized distributor in the Canadian toy and gift sector with a wide retail footprint.

Financial and governance concerns surfaced in late 2024 when Everest stopped delivering the borrowing base certificates required under its TD Bank credit facility, depriving the lender of visibility into collateral coverage. When reporting resumed in July 2025, the company disclosed a collateral shortfall of roughly C$12.6 million, raising alarm about its borrowing position.

Matters escalated further on August 21, 2025, when Everest’s entire board of directors resigned, leaving the company without governance and raising concerns over payroll, statutory remittances, and supplier obligations. With operations already suspended and the borrower significantly over-advanced, TD sought and obtained a receivership order to protect its exposure.

Spergel is acting as receiver. Miller Thomson LLP is counsel to TD Bank, Paliare Roland Rosenberg Rothstein LLP is representing Everest, and Chaitons LLP is advising the receiver.