Auctions for Sask. government-owned liquor store permits to be held in February
Auctions to sell permits associated with Saskatchewan Liquor and Gaming (SLGA) retail stores are set to begin on Feb. 6, the province said in a news release.
Inventory continues to be cleared out as the government moves toward closure of its remaining 34 SLGA locations by the end of March.
“So they are aware of the dates that the stores will be closing moving forward. They are able to make plans,” said Lori Carr, minister of liquor and gaming.
The first store to be closed will be the SLGA liquor store on Lewvan Drive in Regina. Customers said they'll miss the location.
“I guess if we have no other choice then I guess we’ll have to switch to a different store even though we like this one,” said SLGA customer, Gler Kaw.
According to the government, the auctions will be staggered, with the final ones beginning on Feb. 15.
The province said those who are interested in bidding must pre-register and pay a deposit of $5,000 to participate in an auction.
The auctions are only for permits and do not include any buildings, fixtures or inventory in the sale, the province said. Those will be sold separately.
Those who are awarded the permits must also meet all terms that are associated with holding a retail permit.
The province said the auctions will be held on McDougall Auctioneers Ltd’s website.
More details surrounding the auctions can be read on SLGA's website.
“Once the auctions associated with SLGA Retail Inc. permits wrap up, auctions will be held for communities that qualify for an additional permit under SLGA's population matrix, if someone has expressed interest in the permit. These auctions were suspended during the pandemic,” a release said.
Auctions have been scheduled by the province.
Since November of 2015, more than half of the province’s liquor stores have been privatized.
Currently, 34 stores remain government-owned and operated, including five in Saskatoon and six in Regina.
According to the Saskatchewan Government and General Employees’ Union (SGEU), more than 350 SLGA workers will be impacted by the selloffs of the remaining stores.
SLGA Liquor stores once made millions for the government until private sector competition was allowed. The government projects its stores would be losing money by next year. The NDP is skeptical.
“Really would like to see some clearer projections on that revenue. I am skeptical of that projection. I think that the liquor retail market in Saskatchewan is a very lucrative one,” said NDP MLA Nathaniel Teed.
SLGA will continue its wholesale distribution efforts.
The government doesn’t know how much revenue it could earn through the online auction of liquor licenses. The proceeds will go toward severance packages for the estimated 350 employees who will be losing their jobs.
- With Files from CTV News Regina’s Allison Bamford
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