The Toronto Dominion Bank (TSX:TD) is suing the now-closed iconic restaurant known originally as Hamburger Mary's, and then Mary's on Davie, for $278,066.57 in alleged debt.
The restaurant launched in 1979 and had briefly occupied some interim space before settling on 1202 Davie Street. It was a hub for the LGBTQIA2S+ community and was frequented by drag queens. It had billed itself as "Canada’s longest-standing globally-inclusive restaurant."
The 1,800-square-foot restaurant changed ownership in 2018 and rebranded as Mary's on Davie. That business closed on March 13 and the space has been leased to new owners to make way for the Mexican restaurant Barra Gitano.
TD Bank's claim of debt stems from money allegedly lent during the COVID-19 pandemic era, and it lists Hamburger Mary's Davie Ltd. as the corporate entity being sued.
None of TD Bank's claims in its lawsuit filed in BC Supreme Court Aug. 15 has been proven in court and Hamburger Mary's has not yet filed a response to the notice of civil claim.
BIV reached one of the principals in Hamburger Mary's, Michel Duprat, who is also an owner at the Fountainhead Pub on Davie Street. He was not aware of the lawsuit until BIV called him, and he said that he would not have a comment because the matter is before the court.
The TD Bank listed in its lawsuit an alleged $60,000 Canada Emergency Business Account (CEBA) loan dated April 20, 2020, at a five-per-cent interest rate, as well as an alleged $250,000 small-business banking Highly Affected Sectors Credit Availability Program (HASCAP) loan in August 2021, which carried a four-per-cent interest rate.
Both loans were parts of programs aimed at helping restaurants survive the pandemic.
When the federal government earlier this year failed to extend its CEBA-loan repayment deadline, BC Restaurant and Foodservices Association CEO Ian Tostenson told BIV that he expected that between 10 and 14 per cent of the more than 15,000 restaurants in the province could close as a result.
The TD Bank alleges that Hamburger Mary's owes $217,630.95 plus accruing interest on its HASCAP loan, and $60,435.62 on its CEBA loan.
TD Bank said that on July 26 its legal counsel demanded immediate payment of the indebtedness in full.
"The defendant has failed, refused or neglected to pay the indebtedness, or any part thereof, in breach of the loan agreements," the TD Bank alleged in its lawsuit. "The full amount of the indebtedness remains justly due and owing.
- with files from Lindsay William-Ross
