Debts of $1 million for Le Toqué: Normand Laprise still caught by the throat

Things are going from bad to worse for one of the pillars of gastronomic catering in Quebec. After the bankruptcy of three of his businesses in February, chef Normand Laprise is trying these days to save his flagship, the Toqué restaurant.

• Also read: Catering: the Toqué group owes nearly $5 million to its suppliers

• Also read: Chef Normand Laprise says he is “in mourning” after financial difficulties

The debts of the upscale establishment are $1,095,000, of which $871,000 is linked to a loan from the Royal Bank, it is indicated in the proposal made to the restaurant’s creditors in mid-September.

“It’s a gesture that will ensure our survival,” assures Sophie Dormeau, the lawyer who represents the Restaurant Toqué Limited Partnership, about the offer on the table.

The Journal reported in February the bankruptcy of three companies in the Toqué group. A month earlier, Normand Laprise and his business partner Christine Lamarche had closed the five establishments of Brasserie T, where 130 people worked.

The Toqué restaurant, located in the Caisse de dépôt et placement du Québec (CDPQ) building in Montreal, is one of the most famous restaurants in the metropolis. The brand has existed since 1993 and currently employs 54 people.

“We are not planning any layoffs,” specifies Sophie Dormeau, who adds that chef Laprise has already informed his employees and suppliers of the situation.

Except that the decision is neither up to the lawyer nor to Normand Laprise. The fate of the famous restaurant is now in the hands of the Royal Bank, to which the Restaurant Toqué Limited Partnership is offering $220,000, or 25% of the value of its loan.

As the $871,000 of this loan accounts for more than two-thirds of the restaurant’s total debt, a “no” from the Royal Bank would mean bankruptcy.

The Fund will lose money

The meeting of creditors will be held on October 9. It is on this date that the vote will take place and that the fate of the Montreal institution will be sealed.

“We expect the Royal to accept,” indicates the trustee responsible for the file, Nathalie Brault, who worked with the bank to put together the settlement proposal.

The Toqué restaurant offers its 51 other creditors – mainly suppliers – the sum of $100,000, or 45% of the total.

Among them is the Ivanhoé Cambridge subsidiary of the CDPQ, which owns the restaurant premises and to whom chef Laprise and his partner owe $105,000 in unpaid rent.

Small profits, big debt

The documents filed with the trustee show a difficult financial situation, like the crisis that hit many other less prestigious catering businesses after the pandemic.

If the Toqué restaurant is making a profit today, confides Sophie Dormeau, it is not enough to repay the debts, in particular because the renowned establishment had to close its doors for 22 months during COVID.

“The loan from the Royale weighs on the financial health of Toqué,” argues the lawyer, and the proposal is “reasonable” in order to allow chef Laprise to pursue his mission, that of “never skimping on quality.”