A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the Montreal-based meal kit company seeks to restructure with new ownership or investor support. Goodfood took the initial step towards safeguarding itself from creditors by filing an application with the Superior Court of Quebec.
The court granted an initial order, typically providing a 30-day protection period from creditors, preventing them from initiating new legal actions to collect outstanding debts during this time. This protection period can be extended during subsequent hearings as companies progress with their restructuring or winding down processes.
Goodfood’s objective is to restructure, and the company views creditor protection as a means to buy time and flexibility for this purpose. The company intends to seek court approval to solicit potential buyers or investors for its business and assets in the future.
Court documents reveal that due to owing substantial amounts to creditors, Goodfood had to resort to the court for relief and explore a potential sale. The company, known for selling pre-measured ingredient sets and recipes to customers, experimented with an on-demand grocery venture in November 2021, aiming to deliver groceries within 30 minutes. However, by October 2023, the endeavor had to be abandoned due to profitability challenges.
Despite discontinuing these operations, Goodfood retained 233 employees, assuring no immediate job losses related to the court proceedings but signaling potential targeted workforce reductions. While the legal process unfolds, Goodfood will continue fulfilling customer orders.
Founded in 2014 by Jonathan Ferrari and Neil Cuggy, Goodfood saw Ferrari stepping down as CEO on August 25, 2025, and Cuggy, the former president and COO, departing by January 16, 2026, as per court records. Recently, CEO Selim A. Bassoul resigned earlier this week, with Najib Maalouf taking over as the new chief operating officer and president.
