Toronto restaurants owned by celebrity chef Mark McEwan seek creditor protection
The eponymous company of celebrity Toronto chef Mark McEwan has just filed for protection against its creditors following long pandemic shutdowns against which the restaurateur has spoken out verbally.
McEwan Enterprises Inc. – which is behind restaurants such as One Restaurant and Fabbrica, as well as a restaurant company and supermarkets McEwan Fine Foods – claimed more than $ 10 million in liabilities when it filed for protection under of the Companies’ Creditors Arrangement Act (CCAA) at the end of September.
– Siva Swaminathan (@chezsiva) October 4, 2021
This included nearly $ 540,000 in past due or deferred rents, as well as millions owed to suppliers, banks and shareholders, reports The Globe.
Although the court record details how the Top Chef Canada’s restaurants have been forced to close for 10 of the past 18 months due to COVID-19, resulting in a “liquidity crunch,” they also show that some assets have been “underperforming for a number of years,” which impacted the entire company despite the success and prestige of establishments like One.
Even with nearly $ 4 million in grants and loans from the federal government, temporary layoffs and arranged deferrals of rent and rental expenses, the company says it will run out of funds to cover itself from here. the end of this month.
McEwan Enterprises – 55% owned by Fairfax Financial, the rest by Mark McEwan – is essentially proposing to sell the business to itself, assuming most of the responsibility, except for two leases on losing locations: the room restaurant at Yonge & Bloor and the Fabbrica restaurant at Don Mills. https://t.co/2GaMGiwAJw
– Susan K Robertson (@susinsky) October 4, 2021
The plan appears to be a transfer from McEwan Enterprises to a new company, also owned by McEwan and its partners, excluding a few peripheral leases.
McEwan is known during the health crisis for voicing grievances over Premier Doug Ford’s public health restrictions, demanding around the same time last year that Ford “bring Ontario back to work safely.” The closures are a mistake. Do the right thing and drive the economy back! “
He called the shutdown of many sectors of the economy (like the hospitality industry) unjustified, ill-health and fiscal, and said the government was “unfair to restaurants”.
Doug Ford needs to understand that restaurants need to eat indoors to supplement the daily gusts of rain. Install the rain bust! Install the rain bust! You have been very unfair to the restaurants, this confinement must end. @fordnation
– Mark McEwan (@Chef_MarkMcEwan) July 3, 2021
“It amazes me that the government actually thinks that staying closed is even an option for longer. You would think there would be a greater sense of urgency… he told blogTO as the province retreated. limited to meals on the terrace this summer.
“They’ve mistreated the restaurant business so badly – try telling me that my restaurant at 50% capacity with all kinds of protocols in place is no safer than a Costco or a Walmart.”