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 business revealed its move to shield itself from creditors by filing an application with the Superior Court of Quebec.
Upon receiving the court’s initial order, typically granting 30 days of protection from creditor actions, Goodfood now has a window to reorganize its affairs without facing new lawsuits for outstanding debts during this period. The company aims to utilize the creditor protection to facilitate its restructuring process effectively.
Goodfood plans to seek court approval to explore potential buyers or investors for its business and assets in the near future. Court documents reveal that the company faced financial challenges, leading to the decision to seek a sale due to substantial debts owed to creditors.
Despite its primary focus on meal kit sales, Goodfood ventured into on-demand grocery services in November 2021 with a goal of delivering groceries within 30 minutes. However, by October 2023, the venture proved unsustainable and had to be discontinued.
Following the closure of the on-demand grocery division, Goodfood retained its 233 employees, assuring that there are no immediate job losses tied to the court proceedings. However, the company acknowledges the possibility of targeted workforce reductions in the future.
Throughout the court process, Goodfood will continue to accept and fulfill customer orders without disruption. Founded in 2014 by entrepreneurs Jonathan Ferrari and Neil Cuggy, the company recently witnessed changes in its executive leadership, including the departure of former CEO Jonathan Ferrari and President Neil Cuggy. Selim A. Bassoul, the recent CEO, stepped down earlier this week, with Najib Maalouf assuming the position of chief operating officer and president.