Deal in the works to sell Schwartz's Deli

MONTREAL - A deal is reportedly in the works to sell Schwartz's Deli for $10 million.

Management at Schwartz's delicatessen initially declined to comment Sunday when asked to confirm or deny media reports suggesting that the iconic eatery had, in fact, been sold.

However owner Hy Diamond later told the Gazette that Schwartz's is definitely open for business and not about to close.

"Some actually reported that Schwartz's was dissolved at the beginning of January," Diamond told The Gazette. "That is absolute nonsense. Schwartz's is very much alive, as anyone who goes by will see."

Owner Hy Diamond is reportedly working on a deal to sell the restaurant for $10 million to a consortium that includes noted Montreal restaurateur Paul Nakis, as well as music executive Rene Angelil, who is married to singer Celine Dion.

The report could not be independently verified Sunday.

The Nakis family has spent decades owning and operating restaurants in Montreal, the Cherrier Tea Room, O-Select, several Baton Rouge franchises and other restaurants.

Angelil had previously been part owner of the Nickels restaurant chain in the 1990s.

Scwhartz's restaurant staff told CTV Montreal that the office was closed and any questions would have to be answered by management Monday.

The story became a trending Canadian topic on Twitter Sunday afternoon as #Schwartz's comments included one from Montreal journalist Bill Brownstein, who hinted that other high-profile purchasers might be involved, as he tweeted: "Kingpin is major Montreal restaurateur. Nothing finalized yet."

Brownstein later told CTV Montreal that that the reports might be a bit premature.

"Rumours are abounding with Rene Angelil but my sources tell me that no deal has been done yet, although that could change at any moment in time, and that he's just part of a group," said Brownstein who authored a book on the restaurant called Schwartz's Hebrew Delicatessen. 

"You have that fear that it may or may not mushroom into Schwartz's restaurants throughout the country," said Browstein.

"Franchising could be very tempting because it could be a away for the company to generate a lot of income really quickly, to expand really quickly," said Marketing Professor Harold Simpkins from the John Molson School of Business.

"Schwartz's is known all over the world all over the world it's international guidebooks, people come before they even check into the hotels they're asking taxi drivers to take them to Schwartz's," said Garry Beitel, Producer of Chez Schwartz. "It's more of a museum than a restaurant for many people. Can you franchise the aura of the place? I don't think so."

"If it happens it won't be the first time, nothing changes at Schwartz's"; said Manager Frank Silva.

One customer told CTV Montreal that the purchase is good news because of the possible indirect involvement of Celine Dion.

"I think that because she's such an international star, she's going to bring more international people back to Montreal. I think that's wonderful."

One person on twitter expressed a less rosy view on the possible purchase. "My heart will not go on," wrote @tjked.