A court in Quebec has approved Goodfood Market Corp.’s request for creditor protection as the company aims to restructure under new ownership or with financial support from investors. The Montreal-based meal kit company revealed on Wednesday that it initiated the process of safeguarding itself from creditors by submitting an application to the Superior Court of Quebec. An initial court order was issued, granting Goodfood a 30-day shield from creditors, preventing them from initiating new legal actions to collect outstanding debts during this period. The company intends to seek extensions to this creditor protection as it progresses with its restructuring efforts. Goodfood plans to leverage this protection to reorganize its operations effectively.
The company will seek court approval to seek potential buyers or investors for its business and assets in the future. Court documents indicate that Goodfood faced financial challenges, prompting the need for court intervention and potential sale due to its significant debts. While renowned for its meal kit offerings, the company ventured into an on-demand grocery division in November 2021, aiming to deliver groceries within 30 minutes. However, by October 2023, this initiative proved unsustainable, leading to its discontinuation. Despite this setback, Goodfood retained its workforce of 233 employees. The company reassures that there are no expected job losses resulting from the court proceedings, although targeted workforce reductions might occur.
Throughout the legal proceedings, Goodfood will continue fulfilling customer orders. Co-founded in 2014 by Jonathan Ferrari and Neil Cuggy, Goodfood saw changes in leadership with Ferrari stepping down as CEO in August 2025 and Cuggy, former president and COO, departing in January 2026. Recently, CEO Selim A. Bassoul resigned and was succeeded by Najib Maalouf, who assumed the roles of chief operating officer and president.