A request for creditor protection by Goodfood Market Corp. has been approved by a Quebec court as the Montreal-based meal kit company seeks to restructure under new ownership or with investor support. The company filed an application with the Superior Court of Quebec to shield itself from creditors, receiving an initial order granting 30 days of protection during which creditors are prohibited from pursuing new legal actions to recover debts. The protection period can be extended as the company progresses with its restructuring plans.
Goodfood intends to restructure with the help of creditor protection, providing the necessary time and flexibility for the process. The company plans to seek court permission to explore potential buyers or investors for its business and assets. Facing significant debts, court documents reveal that Goodfood had to seek relief and consider a sale option. The company previously attempted to launch an on-demand grocery service in November 2021 but abandoned the venture in October 2023 due to profitability challenges.
Despite discontinuing the grocery operations, Goodfood still employs 233 staff members and anticipates no immediate job losses due to the court proceedings, although targeted workforce reductions may occur. Throughout the court proceedings, customers can continue placing orders, which the company will fulfill. Goodfood, founded in 2014 by Jonathan Ferrari and Neil Cuggy, saw Ferrari step down as CEO in August 2025, followed by Cuggy, who was president and COO, leaving in January 2026. Recently, CEO Selim A. Bassoul resigned and was succeeded by Najib Maalouf, who assumed the roles of COO and president.
The company’s decision to seek creditor protection and restructure its operations comes amid ongoing changes in leadership and strategic direction, aiming to navigate financial challenges and secure its future in the market.
