The City of Mississauga has announced a temporary renaming of the Paramount Fine Foods Centre due to unpaid bills and is exploring legal options.
The city’s biggest sports and entertainment venue will be renamed after terminating its naming rights deal with Paramount Fine Foods, which reportedly owes over $1 million-something the restaurant chain’s founder claims is misleading.
On Tuesday, the Ontario city revealed that the facility at 5500 Rose Cherry Place will now be called the “Mississauga Sports and Entertainment Centre” starting June 1, as it seeks a new partner for naming rights.
“The City unilaterally terminated the contract because Paramount Fine Foods failed to pay the City of Mississauga what it was owed over a prolonged period of time as per the contract terms. The City tried its best to work with Paramount but was unable to reach a resolution and receive payment,” said the release.
According to the city, the restaurant based in Mississauga owes $1.6 million.
“The City’s primary goal is protecting taxpayer dollars,” added the release. “To recoup these costs, the City will be pursuing legal action in the coming weeks.”
Residents, tenants, and event organizers should expect “business as usual” at the venue while staff update signs and information on-site.
“The City’s priority is to minimize disruption while ensuring a high-quality experience for all visitors and guests,” noted the release, emphasizing that all existing bookings and tickets referencing Paramount Fine Foods Centre will still be honored.
Additionally, it was mentioned that food service operations at the center would now be managed by the city.
This venue hosts Raptors 905, which is affiliated with NBA G League’s Toronto Raptors.
‘Misleading public statement’: Fakih
In 2018, this site was renamed Paramount Fine Foods Centre after a 10-year naming-rights agreement was signed between them and Mississauga.
Paramount Fine Foods Centre Paramount Fine Foods Centre in Mississauga is pictured here. (Chopper 24)
In a social media post on Tuesday afternoon, Mohamad Fakih, founder and president of Paramount Fine Foods expressed his disappointment over what he called a “misleading public statement” from the city regarding their partnership’s conclusion.
He claimed his company has been “ready and willing” to settle payments with the city for more than six months.
“Since buying back control of Paramount last year, I have dedicated myself to ensuring that all of its partners, associates, and suppliers were made whole if anything was owing to them from my time as a minority shareholder. This was especially true with respect to the City of Mississauga,” stated Fakih.
He also noted that his team had been collaborating with city officials for several months on reaching an amicable end to their partnership that protects residents from any financial impact related to Paramount.
Fakih questioned why city management chose to issue a public statement during negotiations without prior notice.
He refuted claims made by officials saying they present a “one-sided and misrepresentative version of how things ended.”
“This was not an action taken by someone acting in good faith,” added Fakih.
On Tuesday morning , he posted a video smiling outside ofthecentre , explaining its significancetohim , hiscompany, andthecity.
“Overtheyears , countlessresidentshavecometoplay sports , cheertheirteams , attendconcerts , celebratemilestonesandspendtimewiththeirfamiliesandfriends. Beingpartofthose moments hasbeenaprivilegeforus,” said Fakih.
“Thiswasneverjustaboutputtinganameonabuilding. Itwasalwaysaboutsupportingthecity.”
Fakih mentionedthat hiscompanydecidedtoendthesponsorshipandshiftitscommunityinvestmenttowardsnewinitiativesandopportunitieswithin Mississauga.
“While ourname maynolongerbeonthisbuilding , ourcommitmentto Mississaugaremainsunchanged,” he stated.
Mayor chimesin Mississaugamayor Carolyn Parrishalsoreleasedaseparatestatementtothecity’staxpayer s.
“Paramounthasfailedtopaythe Citywhatit hasowedoveranextendedperiodoftime. Aftermonthsofdiscussions, it hasbecomeobviousthatareasonableconclusioncannotbereached,”said Parrish. p >She reiteratedthatcitieswould pursuelegalactiontorecoup$1.6millionthat Paramountowes.
“Itisunfortunate thateownerof Paramounthaschosentomovethesediscussionintothepublicrealm,”Parrishadded.
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