Wednesday, July 2, 2025

Second Cup Company Files for Creditor Protection — But It’s NOT the Canadian Chain You Know

An international coffee franchising company bearing a similar name to Canada’s well-known Second Cup coffee chain has filed for creditor protection, but the two businesses are completely separate entities.

The Second Cup Coffee Company Inc., which operates franchises in about 20 countries but none in Canada, obtained protection under the Companies’ Creditors Arrangement Act on May 22, according to court documents filed with the Office of the Superintendent of Bankruptcy.

The filing has created confusion with Second Cup Coffee Co., the familiar Canadian coffee retailer that operates 178 stores across the country and celebrated its 50th anniversary this year.

“The company is not affiliated with and is independent from Second Cup Coffee Co., the Canadian coffee chain and retailer,” according to insolvency filings.

The international franchisor, which controls global rights to the “Second Cup Café” brand, operates approximately 170 cafes worldwide in countries including Pakistan, Egypt, Azerbaijan, Cyprus and across sub-Saharan Africa. The company owes creditors approximately $8.9 million.

The CCAA application was filed by the company’s majority creditor, Arbat Capital Group Ltd., after shareholders and directors became concerned that the company would be unable to repay loans without restructuring.

Grant Thornton’s Jason Kanji is serving as the monitor for the proceedings, which aim to stabilize operations and explore restructuring options.

Meanwhile, the Canadian Second Cup Coffee Co. remains financially stable under the ownership of Quebec-based Foodtastic Inc., which acquired the chain in 2021. The Canadian company recently made headlines for dropping surcharges on dairy alternatives and seeking to expand internationally.

The CCAA is federal legislation that allows financially distressed corporations owing more than $5 million to restructure their affairs under court supervision rather than enter bankruptcy.



Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

WeightWatchers Prepares For Bankruptcy Protection As It Loses Ground to Ozempic

WeightWatchers International Inc. is preparing to file for bankruptcy within weeks after securing a debt-restructuring...

Thursday, April 24, 2025, 07:59:23 AM

The Fall of Builder.ai: Microsoft-backed Unicorn Files for Bankruptcy

Microsoft-backed AI startup Builder.ai is entering insolvency proceedings after a major creditor seized most of...

Wednesday, May 21, 2025, 02:56:00 PM

Canadian Battery Recycler Li-Cycle Files for Bankruptcy Protection

Li-Cycle Holdings Corp., a Toronto-based lithium-ion battery recycler once valued at over $2 billion, filed...

Wednesday, May 21, 2025, 02:14:00 PM

Corporate Bankruptcy Filings Surge to Levels Not Seen Since Great Recession

The pace of major corporate bankruptcy filings in the United States has accelerated to levels...

Thursday, April 4, 2024, 03:56:00 PM

Puff, Puff, Pass… Out: How Tokyo Smoke Got Burned by the Cannabis Boom

In what some might call an inevitable conclusion, Tokyo Smoke, once a darling of Canada’s...

Thursday, August 29, 2024, 12:09:12 PM