M.G.B. Ventures Inc. filed a notice of intention to make a proposal on August 26, 2026. On September 25, Justice Smith extended the company’s deadline to file a proposal to November 9 and approved a $75,000 administration charge, below the $250,000 the company had requested. The extension gives M.G.B. time to develop a court-approved sale process and negotiate with its creditors.

The company operates 6 Tim Hortons restaurants in Eastern Ontario. It reported annual sales of approximately $16 million and employed approximately 156 people when it filed, including 41 temporary foreign workers. Paul Burke is its president and a director. A separate Burke-owned company leases the Vankleek Hill restaurant to M.G.B. and is outside the NOI proceeding.

M.G.B. attributes its financial difficulties to weaker sales during the pandemic, labour shortages, higher interest rates and the loss of construction financing for the Vankleek Hill location, which required it to fund approximately $1.2 million of construction costs from operations. The company also says opening three restaurants during the pandemic cost it approximately $500,000 in wage subsidy support. The resulting tax arrears hindered conventional refinancing. In August, franchisor The TDL Group Corp. issued a default notice citing unpaid taxes and a security interest granted without its consent. Bank of Nova Scotia then demanded repayment and warned that it would enforce its security.

The company plans to seek approval for a process to market at least three restaurants, using the franchisor’s transfer process and network of prospective buyers. It also intends to pursue cost reductions and use any completed sales to address secured debt before formulating a proposal.

Albert Gelman is the proposal trustee. Counsel includes Perley-Robertson, Hill & McDougall for M.G.B. and Miller Thomson for the proposal trustee.