TORONTO - Toronto's legendary El Mocambo is back on the sales block.
Less than five years after former "Dragons' Den" star Michael Wekerle reopened the storied concert venue, court documents show the businessman has defaulted on nearly $56 million in loans tied to the property.
An Ontario court appointed EY, formerly known as Ernst & Young, to oversee the sale of the club and its various assets.
It's the latest turn for the 77-year-old venue, which has hosted generations of rock royalty, including the Rolling Stones, U2 and the White Stripes.
Wekerle said on Friday he hopes to rescue the space once again as part of a consortium of buyers planning to submit a bid for the property. He declined to name them.
"I want to try fervently to keep the El Mocambo alive," he said in a phone interview.
"I've got significant investors that have deep pockets who are partnering with me ... Do I have an ownership going forward? Possibly. Will it be significant? No."
Wekerle purchased the property in 2014 for $3.8 million before he spent roughly $35 million on extensive renovations at the multi-level space, which included adding state-of-the-art stage equipment and a recording studio.
After years of delays, the venue reopened in late 2021 with Canadian alt-rock band Our Lady Peace playing a splashy party hosted by Wekerle.
Court documents filed by lender Waygar Capital Inc. last month say Wekerle had already stopped repaying his debt by the time he reopened the space. They allege his most recent payment was in June 2021.
Earlier this year, Waygar made filings seeking to put the El Mocambo into receivership, though the courts appointed Fuller Landau Group Inc. as a financial monitor. Waygar Capital did not respond to a request for comment left on voice mail.
Wekerle said bringing the El Mocambo back to business was complicated by various factors, which included COVID-19 closures, a refinancing of the loan and a highly competitive industry dominated by promoter Live Nation, which also owns several major Toronto concert venues.
"I believed the community would get behind me, which they did," he said.
"I was hoping the music industry in Toronto and Canada would."
He said Live Nation's radius clauses, which often restrict musicians from playing multiple shows at more than one venue in a particular city, killed the chance of attracting popular names interested in more intimate second shows at the El Mocambo. He said those rules only hurt small venues.
"Does 500 ticket sales really restrict 20,000 ticket sales? No." Wekerle said.
"I respect every business that's out there. However, I do think there should have been a little more, what I call 'friendliness and compatriotism' to the El Mocambo because of its legacy status."
While the future ownership of the so-called "El Mo" remains uncertain, the venue still has some upcoming events on its calendar.聽
Wekerle estimates the El Mocambo is about 60 per cent booked for the rest of the year, mostly with private events. In between the gaps of birthdays and corporate parties, he said they reserve nights for local independent acts.
"We are so diverse, doing everything from bar mitzvahs to weddings," Wekerle added.
"We had to do that because we were starved out of the historical El Mocambo rock concert venue (business)."
Despite the setbacks, Wekerle said he doesn't regret buying the venue when he did. It was always a "passion project" and "not a financial investment."
"If I didn't buy it, it'd be a drugstore right now, or a shopping centre, or whatever," he added.
Among the assets up for sale are the El Mocambo trademark, registered in both the U.S. and Canada, its famed palm tree graphic design, and a vodka brand under the name.聽
All bids must be submitted by June 30. The successful bid will be finalized no later than Aug. 15.
Wekerle said that whoever ends up owning the El Mocambo, it remains an important cultural venue.
"It has to be open to the general public as it always was," he said.
"And, you know, if the City of Toronto was smart, they should buy it."
This report by The Canadian Press was first published April 11, 2025.
