When Michael Wekerle bought Toronto's El Mocambo back in 2014, this probably wasn't the outcome he was hoping for: the venue is back up for sale after the now-former owner defaulted on $55.6 million in debt through the companies he controls, The Globe and Mail reports.
"Business will continue as usual with the El Mocambo management team maintaining their excellent concierge service to clients," Wekerle told The Globe, adding that Ernst & Young — the firm appointed by an Ontario court to oversee its sale — is "taking all necessary steps to find a buyer who will preserve the legacy of the El Mocambo."
The venue will continue operations under current management in the interim under the supervision of Fuller Landau, the firm appointed by Justice Peter Osborne.
Bidding is expected to take place between June 30 and August 15. Aird & Berlis LLP lawyer Steven Graff, who represents lender Waygar Capital Inc., expects interest in the sale to be "robust."
After dumping upwards of $30 million into renovating the venue, Wekerle reopened the El Mo in early 2020, only for the COVID pandemic to upend the live music industry, further delaying its opening by another year. It has struggled to attract notable headliners since.