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This sinkhole is yet another urban sinkhole that formed as a result of a broken water pipe. The break flooded some buildings in the area and caused the collapse in front of the deli. This was not a natural sinkhole that formed from the collapse of rock after natural solution of soluble limestone.
The Winnipeg and Katz's Deli sinkhole do demonstrate that our modern urban infrastructure is aging and vulnerable to underground pipe failures. I expect we will hear about more of these collapses in the future in cities all over the world.
For more on the Katz's Deli sinkhole, click here or here.
According to all reports, the Pastrami is fine.