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Hamilton Spectator
21-05-2025
- Business
- Hamilton Spectator
‘People are frantic right now': Emotional fallout from Hamilton banquet halls in receivership
The ripple effect has been considerable following a court-ordered receivership that has indefinitely closed the Michelangelo's and Grand Olympia banquet centres in Hamilton. Events impacted that had been booked at the popular halls range from weddings to high school proms, a steelworkers' banquet and a Hamilton Sports Hall of Fame induction luncheon. The banquet centres were shut down late last week , after Ontario's Superior Court of Justice denied a request from its owners for an extension to repay debt. Locks were placed on the gates of Michelangelo Banquet Centre last week as its parent company was put in receivership. 'People are frantic right now, and a bit hysterical,' said Vico Rosatone, general manager at LIUNA Station, who has fielded 'a couple of hundred phone calls' in the last few days from people desperate to rebook events. He said he wants to help, but it's difficult finding open dates at his hall, adding that he has been working with a manager at Michelangelo's toward that goal. He said he just booked a wedding on seven days' notice for May 24. '(A couple) came in Saturday and we booked them … We are trying our best so if people come in crying, they leave with happy tears.' Rosatone also squeezed in an Ironworkers 736 banquet on May 31. The event has 250 guests and had been booked at Michelangelo's. Steve Pratt, Ironworkers 736 president, saluted Rosatone, adding he felt lucky to rebook for the same date, given that he had already booked hotel rooms downtown for that evening. Mizzy Asanovic, manager at Winona Vine Estates, said it's 'crazy' how many calls he's receiving, but they have few open slots. 'We have picked up a couple of events; we managed to fit in the Mountain Volleyball Club on May 27 … A fairly large event, 500-plus people.' One bride-to-be phoned him Victoria Day, asking if Winona could host her wedding June 7, but he did not have an opening. She said she had paid a $10,000 deposit with Michelangelo's. It's not clear what will happen out of the receivership process with deposits made on bookings at the two halls. The Hamilton Sports Hall of Fame had booked its member induction luncheon at Michelangelo's on Oct. 22. The hall's board members will meet to discuss options. The hall had not yet paid a deposit. 'It's our biggest event of the year, it's important to us, so we're going to have to move quickly,' said Hall of Fame president Sandy O'Reilly. According to court records , the two banquet halls and their related companies are owned by a Mississauga-based family that owes more than $14 million to the Bank of Montreal, including around $8.2 million tied to Michelangelo and $6 million for Grand Olympia. A letter taped to the front door of the Grand Olympia says 'entry or removal by unauthorized persons is prohibited.' Aftab Elahi, listed as the sole officer and director of Mario's Catering Service and Grand Olympia Realco, the parent companies of the banquet halls, did not respond to an email from The Spectator on Tuesday requesting comment. Phone calls to each banquet hall were answered, but officials did not return the calls. The receiver appointed by the bank also did not respond to a request for comment. Last Friday, Galileo Gardens in Stoney Creek made prom dreams come true for Orchard Park high school students, hosting their imperiled rite of passage on short notice that same night. The hall's general manager said Friday afternoon he received a request for help from Grand Olympia, which had booked the prom. 'We wanted to help out,' said Ab Thapar. 'We had the space available and we have worked with Orchard Park in the past.' Michelangelo Banquet Centre and The Grand Olympia were shuttered indefinitely after Ontario's Superior Court of Justice denied a request from its owners for an extension to repay debt. Galileo Gardens staff reported for work, including the head chef from one of the hall's affiliated restaurants. Teachers pitched in, and the 'black and gold'-themed prom went off without a hitch. 'Everyone pulled together and stepped up,' said Thapar. 'Our people were happy the kids had their prom.'
Hamilton Spectator
19-05-2025
- Business
- Hamilton Spectator
2 Hamilton banquet halls placed in receivership, clients scramble to find alternatives
Two popular Hamilton banquet halls have been placed in receivership as a bank looks to recoup millions of dollars in unpaid loans, potentially leaving scores of charity events and weddings in limbo. Michelangelo Banquet Centre and The Grand Olympia were shuttered indefinitely late last week after Ontario's Superior Court of Justice denied a request from its owners for an extension to repay debt. No events were held at either location over the long weekend with the doors at each locked. 'These premises and all of the property herein are now in the possession of the receiver,' read a letter taped to the front door of Grand Olympia at 660 Barton St. in Stoney Creek. 'Entry or removal by unauthorized persons is prohibited.' According to court records , the halls and their related companies are owned by a Mississauga-based family which owes more than $14 million to the Bank of Montreal, including around $8.2 million tied to Michelangelo and $6 million for Grand Olympia. Aftab Elahi — which corporate documents list as the sole officer and director of Mario's Catering Service and Grand Olympia Realco, the parent companies of the banquet halls — didn't respond to request for comment. Michelangelo Banquet Centre and The Grand Olympia were shuttered indefinitely late last week after Ontario's Superior Court of Justice denied a request from its owners for an extension to repay debt. While the halls were placed in receivership on Jan. 29, the appointment order was delayed to allow the owners to make a real estate transaction that would've been 'an amount sufficient to repay the bank in full,' court records state. The proposed transaction was scheduled to close by April 30. On May 15, a person representing the Elahi family asked the court for another 45 days to finish the sale. The Bank of Montreal argued against that extension 'based on a number of concerns.' 'The bank is concerned that there is no current timeline for repayment in full that is supported by evidence of an ability to complete, and the bank has significant concerns regarding the financial circumstances and management of the respondent companies,' the bank said in court records. In an endorsement decision, Justice Jessica Kimmell declined to vary the appointment order and wrote she wasn't satisfied there was 'a supported justification for granting further accommodation.' Locks were placed on the gates of Michelangelo Banquet Hall last week as its parent company was put in receivership. MSI Spergel has been appointed receiver over both banquet halls. What that means for people who had booked future events at Michelangelo and Grand Olympia — and paid deposits — remains unclear. Spergel couldn't be reached for comment Sunday or Monday. 'It came as a surprise to us,' said an event organizer with CollectiCon, a local toy and collectible show that's held monthly events at Michelangelo on Upper Ottawa Street for decades. After hearing the news — and seeing the gate to the venue locked — event organizers had to scramble to find a new location for their Victoria Day show, eventually landing space at Carmen's Event Centre. 'Carmen's really came through for us,' the organizer said. CollectiCon wasn't the only one. Weddings, retirement dinners, community fundraisers and school events like grads and proms were among the affected Michelangelo and Grand Olympia clients who reached out to Carmen's this weekend in a desperate effort to book space. 'Our sales and operations teams have been working diligently and mobilized in real time to accommodate the event customers, which included a handful this weekend and another half-dozen or so in the coming week,' Carmen's Group CEO PJ Mercanti said in a statement. 'Our operations teams have been especially attentive with purchasing food, ordering linens and scheduling staff on short notice.' Mercanti extended his sympathy to hospitality staff and suppliers affected by the abrupt banquet hall closures. 'Especially our many colleagues at Michelangelo, who we have enjoyed a positive working relationship with for many decades.' Michelangelo was incorporated in 1977 and Grand Olympia in 2021, according to receivership records. The records don't specify when Elahi family became involved with the businesses. Court documents state the Bank of Montreal extended Grand Olympia a $7.8 million loan in December 2019 and $8.2 million to Michelangelo in December 2022. Both fixed-rate loans had terms of five years. In its application to place the halls in receivership on Nov. 28, the Bank of Montreal said it had been supervising accounts tied to the borrowers 'for a considerable period of time' due to concerns 'about the financial health of the underlying businesses and the performance of the (borrowers') credit facilities.' 'As a result of such concerns, together with various defaults on the part of the borrowers … the bank determined it no longer wished to continue the banking relationship with (them),' the bank said in its application.
