The closure of all of the Guzzo movie theatres last Thursday has led to the layoff of 300 workers in the Montreal area.
Employees were informed by the management of the family business, led by businessman, Vincenzo Guzzo.
These layoffs took effect the same day, as the theatres closed their doors on Feb. 6, the day after a Quebec Superior Court’ decision authorized the finish of its activities.
The court viewed shutting down and selling remaining cinemas as the best option to ensure creditors are paid, as the company owes $39 million to CIBC, among other creditors.
Even though Guzzo’s remaining theatres had generated revenue, it was not enough to allow the company to build due on its financial obligations.
For the time being, a process of soliciting investors for the purchase of Guzzo’s assets is underway. The appointed trustee, Raymond Chabot, states it will favour a acquireer in the movie theatre industest.
Several potential investors are already interested in acquireing the company’s remaining land, buildings, or equipment.
Interested parties have until Feb. 21 to submit their letter of intent.
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