A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the Montreal-based meal kit company seeks to restructure with new ownership or investor support. Goodfood initiated the protection process by filing an application with the Superior Court of Quebec, receiving an initial order granting a 30-day shield from creditor actions. This period can be extended during subsequent hearings as the company progresses with its restructuring efforts.
The aim of seeking creditor protection is to provide Goodfood the necessary time and flexibility to carry out its restructuring plan. The company intends to seek court approval to engage potential buyers or investors for its business and assets. Court documents reveal that mounting debts led Goodfood to consider a sale after encountering financial challenges, including an unsuccessful attempt to launch an on-demand grocery service in November 2021, which had to be discontinued by October 2023 due to profitability issues.
Despite discontinuing certain operations, Goodfood retained 233 employees, stating that no job losses are expected due to the court proceedings, though targeted workforce reductions may occur. Throughout the legal process, customers can continue placing orders that will be fulfilled as usual.
Goodfood, established in 2014 by Jonathan Ferrari and Neil Cuggy, saw leadership changes with Ferrari resigning as CEO in August 2025 and Cuggy departing as president and COO by January 2026. Recently, CEO Selim A. Bassoul stepped down and was succeeded by Najib Maalouf, who assumed the roles of COO and president.
The company’s move to secure creditor protection underscores its commitment to navigating financial challenges and exploring avenues for sustainable operations amidst evolving market conditions.