Cineplex Inc.’s chief executive is hoping that ending an agreement with a virtual reality golf company, films debuting in Canada before the U.S. and a slew of COVID-19 measures will right his business as it struggles with mounting costs for movie theatres that sat closed for months.
Ellis Jacob said Friday that his Toronto-based entertainment company had decided to mutually call off a deal with TopGolf that would have brought its sports complexes to Canada because it’s “simply not an opportune time” to invest in large projects.
He was simultaneously rejoicing at studios allowing the country to debut new releases like Spongebob: Sponge on the Run, Unhinged and Christopher Nolan’s Tenet ahead of the U.S., which he hoped would draw audiences back to the movies.
“This is a very unusual occurrence,” Jacob told The Canadian Press. “Given what we have done in terms of keeping the guests safe during the pandemic, we got the international release dates and we are really proud of that.”
His remarks came as Cineplex reported a loss of $98.9 million or $1.56 per share in its second quarter, compared with a profit of $19.4 million or 31 cents per share in the same quarter last year.
Revenue for the quarter ended June 30 totalled $22 million, plummeting 90 per cent from $438.9 million, while its cash burn rate fluctuated between $15 million and $20 million every month.
The company was hurt when it was forced by governments to keep theatres closed for months during COVID-19, resulting in temporary layoffs, slashed salaries and tussles with landlords over rent.
Jacob warned analysts on a call Friday morning that the company would take more “bold action” if necessary, but for now, he is focused on welcoming guests to theatres.
To get them back, Cineplex is offering cheaper movie tickets, reserved and distanced seating, increased cleanings and screenings of NHL and NBA games.
Jacob said the plan is already working.
WATCH | Big screen movies are back in Alberta — with new COVID-19 measures:
Theaters in Alberta became the first in the country to open their doors again, but a night at the movies won’t be what guests are used to. 2:01
“It is clear that Canadians miss the big screen and want to come back,” he said, noting that he was planning to head to the movies tonight.
The slate was far from the highly anticipated films, including Black Widow, Mulan and sequels from Star Wars and Avatar, that were once planned for this summer, but were pushed back due to COVID-19.
Mulan-backer Disney has since decided to skip a theatre debut and bring the movie straight to its streaming platform with a premium price of about $30 for viewing.
Jacob, who has long argued that movie watchers prefer the experience of visiting a theatre to watching at home, said he was “disappointed.”
“Disney has been very committed to the theatrical window, but this is a situation where they don’t have enough markets where they feel it would be impactful for them,” he said.
“From talking to them, they say this is more of a one-off and not something they would like to do once this is behind.”
Jacob argued most studios still value the theatre experience and though they’ve shifted in some cases to streaming, he wasn’t worried that switch would stick around forever or hurt his business.
He’ll keep an eye on that situation and on managing the fallout from Cineworld Group PLC walking away on June 12 from a $2.8 billion deal to buy the company.
Cineplex has filed a lawsuit against its former suitor over the failed deal. The matter is set to make it to trial in September 2021, but could be delayed further, Jacob said.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
