Cinemas Guzzo closing West Island theatre amid major financial troubles

Cinemas Guzzo facing major financial troubles Cinemas Guzzo's Des Sources location is closing as the Quebec company faces major financial obstacles.

He calls himself Mr. Sunshine, but it appears there may be dark days ahead for movie theatre mogul Vincenzo (Vince) Guzzo, as he faces financial trouble and fights to save his business.

Guzzo confirmed that he has decided to close Cinema Des Sources, located in Dollard-des-Ormeaux.

“The theatre will be shutting down in the next two weeks,” Guzzo told CTV News.

The Montreal-based entrepreneur and reality TV personality is the owner and operator of Cinemas Guzzo, Quebec’s largest chain of independent movie theatres, with 10 locations in the province.

Frustrated employees

An employee at Cinema Des Sources told CTV News the cinema chain’s cash flow issues have disrupted their biweekly pay cycle.

“It’s also been affecting our cheques. We’ve been getting paid late. Sometimes not even getting paid,” said Lydia Faraji.

Asked if the workers were given any information about the theatre’s impending closure, the employee said they were left in the dark.

“He didn’t tell us much,” Faraji said. “He just told us that we’re shutting down and that’s just how it’s going to be.

“It’s kind of sad, because it’s been here for a long time and it’s been a movie theatre that everyone in the neighbourhood has been going to but at the same time, as a worker, we’re fed up and so we’re happy it’s closing down,” she added.

Asked to comment on the employee’s complaint that workers have not been receiving regular paycheques, Guzzo denied the claims.

“That’s false. Everybody has been paid,” Guzzo said.

Guzzo also declined to address media reports that indicated the heat had been shut off in parts of some of his theatres.

“Some of the claims that are being made, I’m not going to comment on,” he said.

Court ruling on CIBC request

Last week, Quebec Superior Court judge Michel Pinsonnault placed Cinemas Guzzo under interim receivership and ordered the company to open its books to Raymond Chabot, a firm specializing in financial recovery.

CIBC is seeking the liquidation of Cinemas Guzzo, claiming the company owes the bank roughly $38 million. The financial institution is the group’s main lender.

“After more than 14 months of delays, waiting, and leniency, the Guzzo Group is still unable to repay the approximately $38 million owed to CIBC, which has been fully due and payable for several months,” the bank stated, according to court documents consulted by CTV News.

In a mid-November interview with La Presse, Guzzo indicated he planned to oppose the bank’s request “because they're a bunch of idiots.”

In a scathing ruling, Pinsonnault chastised Groupe Guzzo, stating the company “does not seem to take the current situation seriously”, adding that “burying one's head in the sand will not make Groupe Guzzo's financial problems disappear.”

Guzzo declined to comment on the specifics of the judge’s ruling, but said he is taking the necessary steps to comply with the judge’s orders.

“I’m doing my job. We’re getting it done.”

Guzzo said the lease for Cinema Des Sources was set to expire and the decision to shut down the theatre was made in early July, before the CIBC launched proceedings against him.

“Popcorngate”

Guzzo was an outspoken critic of the Quebec government’s lockdown measures during the COVID-19 pandemic, which included a temporary ban on the sale of popcorn at movie theatres. The subsequent backlash was dubbed “Popcorngate”, and Premier Francois Legault ultimately decided to compensate movie theatre owners for the loss of earnings from snack sales.

“COVID did severely affect the movie industry,” Guzzo said in Tuesday’s telephone interview, adding that it has taken more time to recover than expected.