Famed Montreal deli Schwartz's rumoured sold

Rumours that one of Montreals most recognizable landmarks may be changing hands heated up Monday after several reports emerged that the sale of Schwartzs Deli was imminent or already on the plate.

BillBrownstein, Montreal Gazette columnist and author of a book on the smoked meat institution, told CBC News that several of his sources confirmed the sale, though the implications of the deli changing owners still isnt clear.

"Maybe the ink is not yet dry, but I believe if it isnt imminent, it has been done," he said, adding that all the major players in the deal are bound by confidentiality agreements.

Schwartzs owner Hy Diamond, who took over the business in the late 1990s, has been suffering ill health for the last year and wanted to ensure the deli remained in local hands, Brownstein said.

"Theyll continue and I know Hy Diamonds very loyal to his staff," he said. "Im sure theres lots of clauses in there that the people that are there stay there and that nothing radical happen."

Montreal tradition

Founded in 1928 by Romanian immigrant Reuben Schwartz, the deli has been serving up its original recipe smoked meat sandwich to a constant stream of locals and tourists alike for decades from its Saint-Laurent Boulevard shop.

Its storied past became the basis for Brownstein's book and a stage production,Schwartz's The Musical, which premiered in Montreal last year.

The business has changed hands over the years, but the deli itself has altered little since its inception, save for the addition of a take-out counter next door to the restaurant several years ago.

Frank Silva, general manager of Schwartzs, said he couldnt comment on any potential deals.

"Everybodys calling, everyone is asking," he told CBCs Daybreak Monday morning.

"Like I said, right now Im not able to comment on any of those things. For Schwartzs here, for the staff, its business as usual. Nothing changes here. Its like we always say, The whole world is changing except Schwartzs. Its business as usual and nothings going to change here."

High-profile investors

Just whose name may be on the new deed isnt clear. Rumours have surfaced pointing to Cline Dion and husband Ren Anglil as potential investors.

The couple were involvedinthe Nickels chain of restaurants.

Brownstein said its unlikely they arethe main force behind the Schwartz's deal and, if they are involved, theyre likely minor players.

The new Schwartzs kingpin is more likely Westmount-based businessman Paul Nakis, owner of the Baton Rouge restaurant chain and Sir Winston Churchills pub, he said.

Franchise possibilities

So, what could that mean for a business that has prided itself on next to nothing new for almost a century?

Many fear it could mean franchises, an idea that caused a local uproar when a second location in Montreal was considered eight years ago.

"Schwartzs whole cachet is based on the fact that its this little crumpled venue, dilapidated, some might say run-down, but it has so much charm on the Main," said Brownstein.

"To open up a spanking new establishment in Montreal or elsewhere around the country, it just would lose a lot of whats given Montreal some of its charm."

However, given that the reported players in the deal are alreadyin the business of restaurant franchises, its not out of the question, he added.

But getting that same smoked meat that has earned Schwartzs Deli a place on the Montreal must-do map wont be as easy as just opening up another storefront.

The recipe doesnt use chemicals or preservatives and the meat is smoked in an 84-year-old smokehouse that sears in decades of spices, oils, and tradition.

"If you were to start a new deli, youd have to start with a stainless steel smoke house and all the rest and youd be on the same footing as everyone else," Brownstein said.

"One of the reasons that they had to just put away the idea of franchising way back when was because they couldnt come out with that same sort of meat that people expected."