Quebecor bails out Cinéma Impérial, buying out nearly $5M in debt
Heritage-protected building will stay open, but questions remain about tenant, World Film Festival
The Cinéma Impérial, a century-old theatre on Bleury Street, is getting a cash infusion from media giant Quebecor that will facilitate its preservation.
Montreal's perennially financially insecure World Film Festival is based at the Impérial and a spin-off organization is the theatre's owner.
On Tuesday, Quebecor announced it bought out nearly $5 million in mortgage debt looming over the ownership group.
Quebecor CEO Pierre Karl Péladeau told reporters that his company's partnership will "ensure the sustainability" of the landmark theatre and "develop its full potential."
The Impérial, which originally opened in 1913 as a vaudeville theatre and has provincial heritage status, was donated to the FFM in 1995.
A separate non-profit called Centre Cinéma Imperial was created to manage the building, but both are controlled by festival founder Serge Losique's family.
Financial concerns remain
Losique's leadership of the festival has been repeatedly questioned over the years as its financial woes mounted. Several funding agencies cut ties with the festival in 2014 following funding disputes.
That year, Losique took out a $2 million mortgage on the Impérial. He took out another $150,000 loan in 2015 in order to be able to pay the festival's employees.
Last year, festival employees quit en masse over concerns about leadership and money issues. Quebec's Culture Ministry then refused to bail out the festival, citing Losique's unwillingness to present a plan to regain financial stability.
More recently, reports surfaced that Hydro-Québec cut power to the Impérial over outstanding bills.
At Tuesday's news conference, Losique said he was delighted Quebecor had stepped in to help.
"We want to reassure the public that this monument will remain alive and well forever," he said.
He explained that a new administrative board for the theatre would be comprised of Losique, his son, two independents and two senior Quebecor executives.
But the support from Quebecor doesn't mean an immediate end to Losique's financial concerns.
He is due in court on Friday. The creditor who extended the 2015 loan — No Limit Loan Inc. — is seeking the right to take payment.
This year's edition of the Festival des Films du Monde will run from Aug. 24 to Sept. 4. Despite beginning on Thursday, no programming information has been made available.
With files from Navneet Pall