A Tim Hortons operator that relied on temporary foreign workers for 83 percent of staff at one eastern Ontario restaurant has blamed federal hiring restrictions for its financial troubles, according to bankruptcy filings reported by Blacklock’s Reporter.

MGB Ventures Inc., which operated six Tim Hortons restaurants in the region, told Ontario Superior Court that recruiting workers in smaller communities was difficult. Its affidavit listed 41 temporary foreign workers among 156 employees. At its Alexandria restaurant, 19 of 23 employees were temporary foreign workers; at its Dunvegan location, the figure was 15 of 25.

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The company said federal changes had reduced the number of temporary foreign workers it employed. Its filings also listed debts of $1.6 million to the Canada Revenue Agency, $1 million to Scotiabank and $600,000 to the Business Development Bank of Canada. The filings describe the operator’s reliance on the program and its explanation for the insolvency; they do not establish how much the rule changes contributed to its debts.

Ottawa cut the usual cap on low-wage temporary foreign workers to 10 percent of a workplace’s staff in 2024. It later announced a temporary measure allowing eligible rural employers in participating provinces to retain existing workers and raise that cap to 15 percent.