Because of the COVID-19, the management behind the project of Club Med in Charlevoix is forced to revise its budgets. According to our information, the chain Club Med would be postponed to the fall of his payments.
In the last few days, the Group of The Massif, responsible for the construction of$ 120 Million, which provides for the release of land of a hotel complex with 300 rooms, would have deferred some orders for materials and would have asked sub-contractors to lower contracts.
Contacted by The Newspaper, the president of the Groupe Le Massif, Claude Choquette, has confirmed that the site will not restart unless ” to balance the budget “. He made no secret of having discussions with the contractors in order to find solutions to reduce some of the costs.
The business man said to have in particular looked to change some of the materials, which could reduce the charges.
According to our information, several sub-contractors have been notified this week that the stop of the works could last until the autumn. In some cases, the company responsible for the site have asked that contracts be reduced “to 6 %” to balance the budget.
“Basically, we request sub-contractors to finance the project, which, according to me, is unacceptable,” said a source.
Club Med, which belongs to the chinese group Fosun, has seen its financial health shaken by the pandemic, having had to close all of its sites.
In the project of Club Med in Quebec, the chain had to inject$ 14 Million. Québec will pay out as$ 38 Million in the form of loans.
“To adapt to the situation, all of the shareholders of the project, of which Club Med is a part, have revised the timelines of payments. This pause causes impacts “, confirmed by e-mail the marketing manager of Club Med in Canada, Julien Laurent. “In the interests of sound management of the project, it is clear that the balance of the budget should be maintained,” he continued.
Last fall, the opening of the Club Med of Charlevoix has been pushed back a year. The expected completion date is now 2021.