A Quebec court has approved a request for creditor protection by Goodfood Market Corp. as the Montreal-based meal kit company seeks to undergo a restructuring process under new ownership or with support from investors.
In a move announced on Wednesday, Goodfood initiated the process of safeguarding itself from creditors by filing an application with the Superior Court of Quebec. The court granted an initial order, typically offering 30 days of protection from creditor actions, preventing them from initiating new legal proceedings to collect debts during this period.
The period of creditor protection is commonly extended during subsequent court hearings as companies delve deeper into their restructuring efforts or winding down operations. Goodfood intends to utilize this protection to restructure its operations effectively.
The company plans to seek court approval to engage potential buyers or investors for the business and its assets as part of the restructuring process. Court documents reveal that Goodfood resorted to seeking relief from the court and exploring a potential sale due to substantial debts owed to creditors.
Although Goodfood is widely recognized for its meal kit offerings, court records disclose a failed attempt to launch an on-demand grocery service in November 2021, aimed at delivering groceries within a 30-minute timeframe. By October 2023, this venture was discontinued due to profitability challenges.
Despite discontinuing the grocery operations, Goodfood retained its workforce of 233 employees. The company assures no immediate job losses related to the court proceedings but hints at possible targeted layoffs.
Throughout the legal proceedings, customers will still be able to place orders with Goodfood, which will continue to fulfill them. Goodfood was established in 2014 by entrepreneurs Jonathan Ferrari and Neil Cuggy. Ferrari stepped down as CEO on August 25, 2025, while Cuggy, then serving as president and COO, departed by January 16, 2026, as detailed in court documents.
Recently, CEO Selim A. Bassoul resigned and was succeeded by Najib Maalouf, the former COO and president of the company.
