Donnelly Group's media attention sparks buyer interest as court approves deadline extension
A BC court extended the deadline for the Donnelly Group to sell some of its Vancouver pubs and restaurants as it moves through insolvency proceedings.
The BC Supreme Court extended the stay period until June 30, 2024, in a February 27 update to the case.
This comes after one of the Donnelly Group’s proposed sales hit a snag last month. The group, which has rebranded as Freehouse Collective, found a buyer to take over the lease for Cinema Public House in the Granville Entertainment District, but the City of Vancouver tried to stop the takeover.
The City is the landlord for the 901 Granville Street space, and argued the potential new owners may not have enough hospitality experience to successfully manage the bar and pay the $30,000 per month lease.
“The City of Vancouver created the Hospitality Working Group in July 2023, which brings together representatives from the hospitality sector and City staff to identify and recommend policy changes the City can make to support the hospitality sector,” a City spokesperson told Daily Hive.
Cinema Public House media attention generated buyer buzz
But it turns out the drama with the City of Vancouver may have been a blessing in disguise for the Donnelly Group. The headlines apparently generated more interest in the group’s assets from potential buyers.
“As a result of press interest… in respect of Cinema Public House, there has been increased activity and expressions of interest from prospective purchasers of certain of the petitioner’s assets, including those not publicly listed for sale,” a court document from a February 27 hearing read. “The petitioners are exploring those alternatives as well.”
The Donnelly Group first applied for creditor protection in May 2023 after pandemic struggles landed it more than $20 million in debt.
It’s since come to agreements with its lenders and is proceeding with selling some of its businesses to balance its books.
Businesses mentioned in the CCAA proceedings include the Granville Room, Academic Public House, Three Brits Public House, Clough Club, Cinema Public House, Sing Sing Beer Bar, Belfast Love (Toronto), Butcher and Bullock, Stock Room, Isabelle’s, Lamplighter, Death and Taxes (Toronto), Walrus Pub and Beer Hall (Toronto), and Hello Goodbye.
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