The assets of Kroeger Inc., a longtime Canadian distributor of toys, games, costumes, and seasonal goods, have been acquired by Genco International LLC following a formal insolvency proceeding and subsequent bankruptcy. The move marks a new beginning for the 50-year-old company, which has now relaunched under the name Kroeger Marketing, serving the North American market with renewed focus and leadership.
On February 28, 2025, Kroeger Inc., legally known as 1973862 Ontario Inc., filed a Notice of Intention to Make a Proposal (NOI) under Section 50.4 of the Bankruptcy and Insolvency Act (BIA). The filing named B. Riley Farber Inc. as the Proposal Trustee overseeing the proceedings. At the time of the NOI, Kroeger listed approximately $7.3 million in liabilities, including about $1.1 million owed to secured lender Pathward, National Association.
According to court filings, the NOI was prompted in part by the alleged misappropriation of approximately $1.5 million in company funds by the firm’s former Chief Financial Officer. A lawsuit has been filed against the former executive and other parties in an attempt to recover the lost funds. However, by the time of the filing, the company was in a critical state, facing a liquidity crisis with virtually no cash, severely limited access to credit, and no ability to pay key suppliers, landlords, or sales representatives. Pathward had issued a notice of default, while Kroeger’s landlord and several suppliers had begun enforcement steps.
The NOI provided a temporary stay of proceedings against the company under Section 69(1) of the BIA, offering a window to formulate a restructuring proposal. On March 10, 2025, the Ontario Superior Court of Justice (Commercial List) approved an extension to file a proposal, granting the company until May 14, 2025. A second extension was granted on May 2, 2025, following the Court’s approval of a sale of substantially all of the company’s assets. The stay was extended a final time until May 23, 2025.
However, no proposal or further extension was filed by the deadline. As a result, Kroeger was deemed bankrupt on May 23, 2025, in accordance with Section 50.4(8) of the BIA. The asset sale to Genco International had been approved and finalized prior to this date, positioning the buyer to take over operations through a newly formed entity.
Strategic Acquisition and Relaunch
While the original Kroeger entity ceased to exist, the brand’s legacy continues under new ownership. Genco International, the buyer of Kroeger’s assets, is a multinational group led by Rubin and Michelle Beige, the next generation of the Beige family that founded the globally renowned Rubie’s Costume Company. Known for their deep industry knowledge and hands-on experience, the Beiges bring a strong operational and strategic background to the new venture.
The restructured business now operates as Kroeger Marketing, with headquarters remaining in Toronto and operations continuing from a 55,000-square-foot warehouse. The executive team includes Grant Chapman as Chief Operating Officer, and Rubin and Michelle Beige as Co-Chief Executive Officers.
“This acquisition marks a new era for Kroeger. We’ve stabilized the foundation and are now looking forward to expanding our portfolio, enhancing our technology stack, and bringing innovation to every level of our supply chain,” said Chapman.
“It is with great excitement that Genco International welcomes the Kroeger portfolio into our family,” added Rubin Beige. “We see tremendous opportunity for expansion, while continuing the legacy of a company we’ve long respected.”
Distribution Model and Growth Strategy
Kroeger Marketing retains its role as a full-service stocking distributor, maintaining domestic inventory and offering replenishment services for major retailers including Walmart, Canadian Tire, Loblaws, Mastermind Toys, and Indigo. The company’s distribution model continues to support both large-scale chains and independent storefronts across Canada.
Its core strategy includes exclusive and semi-exclusive brand distribution, robust e-commerce support, and an emphasis on direct-to-consumer fulfilment. Kroeger Marketing supports both Amazon Vendor and Seller programs and “extended aisle” initiatives for retail partners.
In addition to its traditional product mix of toys, puzzles, and games, the company is expanding into adjacent categories such as arts and crafts, construction kits, lifestyle goods, and holiday costumes and accessories.
Rebuilding After Crisis
Despite the turmoil earlier in the year, Kroeger Marketing has successfully stabilized its workforce and is now focused on strategic hiring to support targeted growth areas. Leadership emphasizes that the company’s future lies in inventory agility, operational reliability, and channel-differentiated product offerings.
“Even in a challenging economic climate, our focus remains on delivering unsurpassed value through mitigating tariff impacts, offering domestic inventory, and supporting our customers with expert service,” said Chapman. “We’re open for business and actively seeking new partnerships and representation opportunities.”
Positioning for the Future
The acquisition and relaunch come at a time when supply chain efficiency, domestic fulfillment capabilities, and resilient distributor partnerships are top of mind for North American retailers. With the backing of Genco International and experienced leadership at the helm, Kroeger Marketing is positioning itself as a modern, responsive distributor for a changing market.
For Rubin and Michelle Beige, the acquisition is a continuation of a family legacy rooted in the toy and costume industries. Through Genco International, the Beiges aim to build a portfolio of brands and distribution platforms with global potential—Kroeger Marketing being a cornerstone in that vision.
