A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the company seeks to restructure under new ownership or with support from investors. The Montreal-based meal kit provider disclosed its move to shield itself from creditors by filing an application with the Superior Court of Quebec.
The court granted an initial order, providing Goodfood with a 30-day safeguard against creditors, preventing them from initiating new legal actions to recover debts during this period. Typically, the creditor protection duration can be extended through subsequent court hearings as companies progress with their restructuring efforts.
Goodfood’s objective is to revamp its operations, with the company stating that creditor protection will afford them the necessary time and flexibility to pursue this goal. The next step involves seeking court approval to seek potential buyers or investors for the company and its assets.
According to court documents, Goodfood found itself in financial distress owing to substantial debts, prompting the need for court intervention and consideration of a potential sale. Despite its core business of offering ingredient kits and recipes to customers, the company ventured into an on-demand grocery division in November 2021, aiming for quick deliveries within 30 minutes. However, by October 2023, the initiative proved unprofitable and had to be discontinued.
Following the closure of the grocery division, Goodfood retained 233 employees, assuring no direct job losses due to the court proceedings but hinting at targeted workforce reductions. Throughout the legal process, customers can continue to place orders, which Goodfood will fulfill as usual.
Goodfood, founded by Jonathan Ferrari and Neil Cuggy in 2014, saw Ferrari resign as CEO in August 2025, while Cuggy, then President and COO, departed by January 2026. Recently, CEO Selim A. Bassoul stepped down and was succeeded by Najib Maalouf, who assumed the roles of COO and President.
