M.G.B. Ventures Inc., the operator of six Tim Hortons franchises across Prescott and Russell and Stormont, Dundas and Glengarry, has entered restructuring proceedings under the Bankruptcy and Insolvency Act.
Regional Economic Footprint
M.G.B. Ventures operates six Tim Hortons locations in the region, including two in Hawkesbury and one each in Alexandria, Dunvegan, Vankleek Hill, and L’Orignal. The company reported approximately $16 million in annual sales in 2025 and employs 156 people in the region, including 109 full-time workers and 41 part-time staff.
In a September 22 court filing, M.G.B. Ventures Inc. sought restructuring financing protections and highlighted the severe economic impact store closures would have on employees, landlords, and local suppliers across Prescott and Russell and Glengarry.
Court documents illustrate the total estimated monthly expenses, including suppliers, utilities, insurance, and maintenance, reach nearly $897,000. In a sworn affidavit, sole director and president Paul Burke emphasized that while the TDL Group Corp. (Tim Hortons) serves as the primary direct supplier, the disruption of local operations would ripple across downstream distributors and suppliers throughout Ontario and Quebec.
Financial Distress
The company’s financial distress originated following an aggressive expansion strategy combined with prolonged pandemic disruptions. M.G.B. Ventures opened its flagship Alexandria store in 1994 and operated profitably for decades before initiating a significant expansion between 2017 and 2020.
In 2020, the company went ahead with the opening of its fifth, sixth, and seventh locations, believing that COVID-19 public health restrictions would resolve in the short term.
The impacts of COVID-19 proved to be more significant than anticipated. In 2021, a third Hawkesbury location permanently closed following a 90% decline in customer traffic.
The court filings outline several operational setbacks, beginning with construction delays at the new Vankleek Hill location costing $1.2 million more than planned. Among others, the company cited soaring food inflation and rising trade tensions between Canada and the United States as reasons for reduced operating margins and weakened sales projections.
Temporary Foreign Worker Program
In his sworn affidavit, Burke also stated that participating in the Temporary Foreign Worker (TFW) program created financial pressure on operations. In accordance with federal rules requiring employers in smaller communities to provide subsidized housing, M.G.B. Ventures partnered with Burke’s development firm, PGB, to buy, build, and sublease homes and apartments to workers at break-even rates.
However, due to changes to the federal TFW program, the company employed a smaller temporary foreign workforce, and some of the properties leased from PGB became underutilized, causing inefficiencies and impacting cash flow.
Across M.G.B. Ventures’ six locations, 41 of the 145 restaurant employees are temporary foreign workers representing 28.3% of the workforce. The concentration varies significantly by store, reaching as high as eight in ten workers in some communities:
Alexandria: 82.6% TFW
Dunvegan: 60.0% TFW
Hawkesbury (#3413): 33.3% TFW
Vankleek Hill: 32.0% TFW
L’Orignal: 18.8% TFW
Hawkesbury (#1001): 15.6% TFW
Earlier this year, Tim Hortons announced a nationwide hiring campaign to bring in 10,000 local workers and reiterated an ongoing commitment to hire locally, whenever possible, in every community it serves.
As part of the May 2026 announcement, Tim Hortons stated that temporary foreign workers accounted for only about 3.6% of its overall national restaurant workforce.
Creditor Pressure
M.G.B. Ventures’ financial pressures reached a breaking point in August 2026 when the Bank of Nova Scotia issued payment demands for $1,084,676.59 in accruing fees, interest, and penalties.
The TDL Group Corp. (Tim Hortons) also issued a letter saying it could terminate the franchise agreements over unaddressed tax debts.
The Canada Revenue Agency claims $337,789.85 on account of unremitted employee source deductions and $1,270,675.98 on an unsecured basis, comprised of corporate income tax and excise tax.
The Restructuring Strategy
MGB’s restructuring strategy relies on launching a Court-approved Sale and Investment Solicitation Process (SISP). The plan involves marketing and selling at least three of the six restaurants.
Proceeds from the sales will be used to pay down balances owed. In the interim, MGB is implementing cost-reduction initiatives such as re-evaluating employee shifts, deferring non-essential maintenance, seeking landlord rent relief, and reducing management’s compensation to improve cash flow.
