Financial problems are brewing for The Second Cup Coffee Company. The global chain that controls 170 coffee shops in 20 countries from Pakistan to Egypt has filed for creditor protection in Ontario after company directors said the firm cannot repay a $8.9 million debt owed to creditor Arbat Capital Group.

The Toronto-area-based company also operates shops in Kuwait, Azerbaijan, Yemen, Lebanon, Cameroon, Ghana and several other countries.

The international Second Cup operation is unaffiliated with Canada’s Second Cup, a chain launched in Toronto in 1975 that has changed hands several times since then. It is currently owned by Montreal-based Foodtastic, a company led by Chief Executive Peter Mammas.

“The international operations have nothing to do with the Canadian operations,” Mammas said in an interview with CoStar News. “We use different coffee, different logos, and there is no direct involvement between either company.”

The process centred on Second Cup international under the Companies’ Creditors Arrangement Act, or CCAA, is being overseen by monitor Doane Grant Thornton and aims to “stabilize operations, entertain discussions with stakeholders, obtain DIP (Debtor in Possession) financing, explore restructuring options and pursue a SISP (Sale and Investment Solicitation Process),” according to CCAA records.

As for Second Cup in Canada, it is one of Foodtastic’s “best performing brands,” said Mammas.

“We bought it during COVID, remodeled the stores, changed our branding and signed new deals with Metrolinx in the Toronto transit system and Petro Canada, where we are opening a lot of Second Cups inside,” he said.