03/20/2026
To address recent speculation and clarify the situation regarding Smugglers:
Due to ongoing infrastructure issues within the building, including repeated city sewer backups and waterline failures, our operations have been significantly impacted over an extended period of time. While other restaurant tenants in the building have also experienced issues, Smugglers is located at the lowest point of the building, resulting in flooding consistently accumulating within our premises and causing the most severe disruption.
Throughout this period, Smugglers continued to fulfill all obligations under its subtenancy while attempting to operate under increasingly challenging conditions.
We were advised that it is not safe or permissible to operate or serve food while active flooding and required remediation and renovations are underway. Due to the nature of the city sewer backups, the conditions were deemed unsafe, and we were ultimately given a final warning that the issue needed to be resolved before operations could continue. As a result, we have been unable to operate our business for an extended period.
Despite ongoing communication, these issues were not resolved in a timely or effective manner. This placed us in an untenable position, as it is not feasible to continue paying for a space that we are legally and physically unable to operate in.
We would also like to clearly address misinformation regarding the widely mentioned $200,000 figure. Smugglers does not owe $200,000 in back rent. This amount relates to a clause within a separate agreement tied to the primary leaseholder, Cindy Down, through 1249647 Alberta Ltd. Under that agreement, in the event of a default by the leaseholder, a provision is triggered requiring approximately four months of rent to become immediately payable. Smugglers operated strictly as a subtenant and is a separate entity from that agreement.
Additionally, Smugglers ceased receiving financial support from Cindy Down following internal disputes within ownership. There were also discrepancies in how the lease arrangements were represented, which further complicated the situation and impacted our ability to continue operating under those terms.
After months of ongoing issues, lack of resolution, and inability to operate, we were ultimately forced to make the difficult decision to cease payments and vacate the premises.
Looking ahead, we are actively exploring a new location and evaluating new directions for the brand. Our goal is to continue building on the legacy of the late Tim Down, Smugglers’ refounder, and to carry that vision forward in a way that reflects the strength and resilience of our team and community.
We appreciate the support and understanding from our community during this time.
Smugglers
