The future of the Cinémas Guzzo chain remains uncertain, but interest in its assets is strong as 37 prospective buyers have signed non-disclosure agreements to explore acquisition possibilities, Postmedia reports.

The Quebec-based theatre chain, burdened with more than $100 million in debt, closed its last seven locations on Thursday following a Quebec Superior Court ruling granting the receiver authority to shutter operations. Receiver Dominic Deslandes confirmed the high level of interest in the company’s assets.

“We have 37 parties who have signed NDAs,” Deslandes told Postmedia. “Some want to buy everything, some want pieces of the business. We’ll know more by Feb. 21.”

Potential buyers are expected to submit letters of intent by Feb. 21, with final binding bids due by April 23. If a sale is finalized, transactions could close as early as May, pending court approval.

The Rise and Fall of Cinémas Guzzo

Founded in 1974 by Angelo Guzzo, the company became a dominant force in Quebec’s movie theatre industry, operating more than 150 screens at its peak, according to Postmedia. Before the COVID-19 pandemic, the Guzzo Group had ambitious expansion plans beyond Quebec, but financial troubles derailed those efforts.

The pandemic, along with the rise of streaming services, severely impacted ticket sales. By late 2024, Cinémas Guzzo had entered interim receivership with a 13-week window to stabilize its finances. However, as revenues failed to rebound, the court placed the company into full liquidation by December.

While Deslandes had hoped the holiday season would provide a financial boost, the numbers did not meet expectations.

“Normally, the holiday period is a good one for cinemas,” he told Postmedia. “But in January, we saw that revenues were still not enough to keep up with expenses.”

On Wednesday, Quebec Superior Court Judge Michel A. Pinsonnault justified the court’s decision in a 19-page ruling.

“Unfortunately, the company’s financial forecasts have proven to be disastrous and unrealizable so far,” he wrote, according to Postmedia. “The financial hemorrhage must stop and must give way to a reasonable and realistic recovery process without creditors worsening their financial situation.”

Future of the Chain Remains Unclear

Despite the court-ordered asset sale, Cinémas Guzzo President Vincenzo Guzzo is still searching for ways to retain control of the company.

“I know that Mr. Guzzo is still looking for financing,” Deslandes told Postmedia. “If he can come up with a way to pay creditors, it could be a different story.”

So far, however, the courts have rejected Guzzo’s restructuring proposals, as creditors continue to push for a full receivership sale following months of unpaid debts and failed refinancing attempts. Guzzo declined to comment on the situation when reached by Postmedia.

Cinémas Guzzo has stated publicly that the closures are temporary.

“Due to circumstances beyond our control, we are temporarily closing our cinemas,” the company said in a Facebook post. “We thank you for your loyalty over the years and look forward to welcoming you back soon.”

La Presse recently reported that the chain’s creditors, include CIBC, private lenders, government, and property owners housing the theatres.

Deslandes’ firm, Raymond Chabot Grant Thornton, has been authorized to liquidate assets in separate pieces, according to La Presse.