A request for creditor protection by Goodfood Market Corp. has been approved by a Quebec court, signaling the company’s aim to restructure under new ownership or with investor support. The Montreal-based meal kit provider disclosed its move towards protecting itself from creditors by submitting an application to the Superior Court of Quebec.
Following the court’s decision, which typically grants a 30-day protection period from creditors, prohibiting them from initiating new legal actions to recover debts during this time, Goodfood can now proceed with its restructuring plans. The company intends to leverage the creditor protection period to facilitate its restructuring efforts and gain necessary flexibility.
Goodfood plans to seek court approval to engage potential buyers or investors for the company and its assets as part of the restructuring process. Court documents reveal the company’s financial challenges, prompting the need for court intervention and potential sale due to outstanding debts.
Although renowned for its meal kit services, Goodfood ventured into an on-demand grocery division in November 2021 with the goal of delivering groceries within 30 minutes. However, by October 2023, the venture was discontinued due to profitability concerns.
Despite discontinuing the unsuccessful operations, Goodfood retained 233 employees with assurances of no immediate job losses related to the court proceedings. The company, however, suggests the possibility of targeted workforce reductions.
During the ongoing court proceedings, customers can continue placing orders as Goodfood ensures fulfillment of its services. Founded in 2014 by Jonathan Ferrari and Neil Cuggy, the company saw executive changes with Ferrari stepping down as CEO in August 2025 and Cuggy leaving his role as president and COO in January 2026. Recently, CEO Selim A. Bassoul resigned and was succeeded by Najib Maalouf, the former COO and president.
The court-approved creditor protection provides Goodfood with a crucial opportunity to navigate its financial challenges and pursue a successful restructuring path.