A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as part of its efforts to undergo restructuring with a new owner or investor support. The Montreal-based meal kit company disclosed on Wednesday that it initiated the process by submitting an application to the Superior Court of Quebec.
Following the court’s decision, which typically grants a 30-day shield against creditors, preventing them from initiating new legal actions to collect debts, the protection period may be extended during subsequent hearings as the restructuring progresses.
Goodfood’s objective is to restructure, utilizing the creditor protection to secure the necessary time and flexibility for this purpose. The company intends to seek court approval to seek potential buyers or investors for its business and assets.
Court filings reveal that financial challenges led Goodfood to seek court protection and explore a potential sale due to outstanding debts. Despite its primary business of providing pre-measured meal kits to customers, the company ventured into on-demand grocery delivery in November 2021, aiming for quick deliveries within 30 minutes. However, by October 2023, the endeavor was discontinued as profitability could not be achieved.
Although the grocery division was shut down, Goodfood retained 233 employees. The company assures that no job losses are anticipated due to the court proceedings but may implement targeted workforce reductions.
Throughout the court proceedings, customers can continue to place orders that Goodfood will fulfill. The company was founded in 2014 by Jonathan Ferrari and Neil Cuggy, with Ferrari stepping down as CEO on Aug. 25, 2025, and Cuggy leaving his role as president and COO by Jan. 16, 2026, as stated in court documents.
Recently, CEO Selim A. Bassoul resigned and was succeeded by Najib Maalouf, who assumed the roles of chief operating officer and president.