MONTREAL, March 18, 2020 /CNW Telbec/ - Sportscene Group Inc. ("Sportscene" or "the Company"); (TSXV: SPS.A) announces today the temporary closure of approximately 25% of its restaurants, representing 13 La Cage - Brasserie sportive restaurants and the Moishes restaurant for an indefinite period. This initiative is in addition to the measures already put in place by Sportscene to comply with government recommendations regarding the spread of the COVID-19 virus.
"Further to actively following the authorities' guidelines, these additional measures will help reduce the risks to the health and safety of our customers and employees. We regret the layoffs resulting from these measures and the effect this will have on our employees and their families. I would also like to highlight the hard work of all our teams who are diligently managing this situation in order to help mitigate the effects of the COVID-19 virus on the health of the population," commented Jean Bédard, President and Chief Executive Officer.
These measures will take effect starting today. We have also reallocated certain resources to our home delivery and take-out services in restaurants that remain in operation. These measures still result in the temporary layoff of 2,200 people.
Finally, in order to mitigate the financial impact of this situation on some of our partners, we are now granting royalty payment breaks to our 11 franchisees for an indefinite period.
Profile
Sportscene Group Inc. is a pioneer and a leader in the ambiance restaurant niche in Quebec. Since 1984, it has been operating the restaurant chain La Cage – Brasserie sportive (« La Cage »), which differentiates itself by its sporting ambiance and food offering made from fresh, local products. Enjoying a strong brand image, the La Cage banner is present throughout the province and comprises 43 outlets at the date hereof. Sportscene is diversifying its restaurant activities through its operation of the Moishes steakhouse, of a breakfast restaurant L'Avenue, of an Asian cuisine restaurant P.F. Chang's and of its catering business for special events, thus becoming a significant player in Quebec's restaurant industry. Besides its restaurant operations, Sportscene is active in the sale of La Cage and Moishes branded products in grocery stores.
Disclaimer
This press release contains forward-looking statements relating to the Company. Statements based on management's current expectations contain known and unknown inherent risks and uncertainties. Actual results may vary from expectations. The reader is cautioned not to place undue reliance on forward-looking information. The Company does not undertake any obligation to update or revise any forward-looking statements as a result of new information, future events and other changes, except if required by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Sportscene Group Inc.
Jean Bédard, Chairman of the Board, President and Chief Executive Officer, François-Xavier Pilon, Vice-President, Finance, 450-641-3011
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