All the Guzzo cinemas are “temporarily closing,” according to a message by the theatre chain on social media Friday.
“Due to circumstances beyond our control, we are temporarily closing our cinemas,” the social media post reads. “We thank you for your loyalty over the years and look forward to welcoming you back soon.”
The message comes days after a Superior Court ruling that said maintaining operations has “become untenable” and “must be reassessed immediately.”
The court ruled in favour of a court-appointed receivership in 2024, and the subsequent report released in mid-January suggested operations cannot continue as they were.
“While theatres do generate revenues, they are clearly insufficient to allow the Cinemas Guzzo Group to meet its current and punctual financial obligations,” the ruling from Justice Michel A. Pinsonnault reads.
Several suppliers, the document adds, “were not being paid due to a lack of cash.”
Guzzo owes its main debtor, the Canadian Imperial Bank of Commerce (CIBC), substantial amounts of cash.
The court document adds that CIBC stated it has no “confidence in the debtors and had objective and serious reasons to fear that their position would deteriorate further if they continued to operate their businesses in a context of chronic lack of liquidity.”
Receiver Dominic Deslandes was monitoring Guzzo Cinemas expenses and receipts and noted “a marked deterioration in the financial situation of the Cinemas Guzzo Group” as of mid-January.
The court said deferring payments “only worsens the financial situation” and that “the snowball is only getting bigger and bigger.”
“The financial hemorrhaging must stop and be replaced by a reasonable and realistic recovery process without creditors worsening their financial position by having to continue providing goods and services that are unlikely to be paid for in full,” the ruling reads.
Guzzo Cinemas CEO Vincenzo Guzzo told CTV News that he was meeting with his finance advisors and had no comment on the ruling.
The ruling is the latest update in a string of stories about the once-dominant Quebec cinema chain.
Since November, Guzzo has closed three locations, including its flagship location overlooking the Metropolitan Expressway in Marché Central.
The court document says that Guzzo made the decision to close those theatres without discussing it with the receiver.
A ruling in December placed the company in liquidation.
