A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the Montreal-based meal kit company seeks to restructure either under new ownership or with support from investors. Goodfood took the step to shield itself from creditors by filing an application with the Superior Court of Quebec, which issued an initial order granting the company 30 days of protection from creditors preventing new lawsuits to collect outstanding debts during this period.
The creditor protection period can be extended at subsequent hearings as companies progress with their restructuring plans. Goodfood aims to restructure, utilizing the creditor protection to have the necessary time and flexibility. The company plans to seek court approval to engage potential buyers or investors for the business and its assets.
According to court documents, Goodfood faced financial challenges and accumulated significant debts, prompting the need for court intervention and consideration of a sale. Despite previously launching an on-demand grocery division in November 2021 with plans for quick deliveries, the venture had to be abandoned by October 2023 due to profitability issues.
Although the company ceased the grocery operations, it retained 233 employees and anticipates no job losses directly related to the court proceedings. However, targeted workforce reductions may be implemented. Throughout the court proceedings, customers can continue placing orders that Goodfood will fulfill.
Goodfood’s founders, Jonathan Ferrari and Neil Cuggy, established the company in 2014. Ferrari stepped down as CEO in August 2025, followed by Cuggy leaving his role as president and COO in January 2026. Recently, CEO Selim A. Bassoul resigned and was succeeded by Najib Maalouf, who assumed the roles of COO and president.