Is Toronto’s El Mocambo in financial trouble? Maybe.
If you’ve been to the El Mocambo since its reopening, you have to agree that it’s a marvel both in terms of its visual impact and the venue’s technical capabilities. Owner Michael Wekerle sunk tens of millions of dollars into the renovation. I love the place.
However, there’s a story that things may not be going well financially. COVID was a challenge for all venues, but it was particularly tough for the Elmo because of debt incurred by the reno costs. Today, music venues continue to struggle under the weight of rents, interest rates, razor-slim margins, and a younger demo that doesn’t drink like their elders.
Wekerle hoped to attract big-league names for exclusive (and expensive) concerts. The Rolling Stones, Pearl Jam, and The Who were apparently approached, but none accepted his offers.
Now the Globe and Mail reports that Waygar Capital, a lender who provided funding for the Elmo, wants to put the venue into receivership. They say that there’s the matter of $88 million in defaulted loans that date back to 2018. Interest rates play a big part.
Wekerle understands the issue. Whatever happens, he wants to retain at least some ownership stake in the Elmo. He also says that the true amount owed to lenders is about $72 million.
The last thing the Canadian music scene is for another small venue to disappear. Let’s hope this gets resolved.
I love the Elmo but the math is $77mm loan on a $5-6 million building with a business of say $3-5million top line revenue. Let it go bankrupt, get rid of Wek and seek an angel investor to save it.
Ticket prices to the venue seem to be at a premium over others for roughly equivalent acts and as a result I’ve never even been since it reopened.
Ticket prices to the venue seem to be at a premium over others for roughly equivalent acts and as a result I’ve never even been since it reopened. Alternative take, they just haven’t booked the right act I’m willing to pony up for. I was thinking about it for Jesus Jones.