In financial difficulty, the Large Market request the assistance of the City of Quebec, which granted a loan of 300 000 $, agrees to forego revenues of $ 1.7 million and requires a plan for recovery, as early as 2020.
The information has been disclosed in a summary decision published on Friday morning, following a meeting of the executive committee of the City, the day before.
The decision of the elected a response to a request of the Cooperative of vegetable producers of Quebec (CHQ), which is in financial difficulty. “At the end of the first year of operation and three months of health policies outstanding relating to the COVID-19 , the CHQ determines that it has under-evaluated the duration for deploying the organizational efforts and financial resources to the implementation of its business model, for the management of the Large Quebec Market. This situation has had the consequence of delaying the implementation of its marketing strategy, aiming to generate revenue from sponsorships, essential to the profitability of its operations”, reveals the decision.
The CHQ has also had to adjust the supply of store Deliveries and the grocery Cart-and-Pinion, under his charge, in order to meet the needs of customers.
Loss of $1.7 million
The City has therefore agreed to grant a term loan of $ 300,000 to compensate for the “lack of financial liquidity, created in particular by the pandemic”. In addition, the municipality agrees to deprive himself of several sums for the years to come, and which will total $ 1.7 million, or $ 500,000 per year (185 000 $ for 2019). It will not collect the annual sum equivalent to 35 % of gross income of the HQC from rentals, as well as the annual sum equivalent to 35 % of the profit from operation for the years 2019, 2020, 2021 and 2022, said. It gives up to the annual amount related to the maintenance, repair and replacement of components of the Large Market, for the same years. The HQC agrees, however, to assume other charges and taxes.
To rectify the situation
The City requires in return that the CHQ is provided with the services of an independent expert to straighten out his situation. It must “paint a picture of the financial situation, to assess the potential of new revenue as well as optimisation of expenses, to recommend concrete actions to maximize the customer experience and that will have a positive effect on ridership, and this throughout the year”.
If the organism manages to recover, the City warns that it “reserves the right to demand unilaterally,” the are for 2021 and 2022.