Cinemas Guzzo closes 2 more locations amid financial troubles

A Guzzo cinema sign is seen on a store front in Montreal on Tuesday, June 18, 2019. THE CANADIAN PRESS/Paul Chiasson

Cinemas Guzzo is closing two more of its locations in Quebec amid its ongoing financial troubles.

The company announced in a press release on Monday that two cinemas were permanently closed effective immediately: the Méga-Plex Marché Central, near Highways 15 and 40, and the recently opened Méga-Plex in Saint-Jean-sur-Richelieu.

“This extremely difficult decision is necessary to ensure the sustainability of our family business, following the challenges imposed by the global health crisis of recent years. This, despite all efforts by our team and collaborators to find solutions,” the release stated.

Vincenzo Guzzo, the owner and operator of Cinemas Guzzo, told CTV News those two locations were the ones that “lose the most money.”

“In the case of Marché Central, it loses in excess of $1.5 million a year,” he told CTV News.

“It’s [been] 14 months that we are in litigation with Marché Central and it’s the third time now that they’ve tried to cancel the lease … It’s like being served for divorce three times in a row. Eventually you’re going to say, ‘You know what, I accept, see you later.’”

In late November, the Cinema Des Sources, located in Dollard-des-Ormeaux, was also permanently closed.

Guzzo said the two recent closures resulted in about 30 temporary layoffs of part-time employees and that full-time employees are being relocated to other cinemas.

The Lacordaire and Sphèretech locations will also now be opening in the afternoons on Tuesdays and Fridays, he added.

Just before the holidays, Cinémas Guzzo vowed to protect nearly 500 jobs following news reports that a Superior Court decision placed the company in liquidation and called for the sale of its assets to repay creditors. Guzzo retains control of its operations in its theatres.

“Aware of recent challenges and increased public attention, we remain determined to implement concrete measures to strengthen our financial stability and improve our services,” the company said Monday in the release. “Although we have strived to preserve all jobs, certain measures have become unavoidable.”

There are now seven cinemas under the Guzzo brand, down from 10.

Guzzo told CTV News he doesn’t expect further closures.

With files from The Canadian Press