A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the company aims to restructure under new ownership or with investor support. The Montreal-based meal kit provider revealed on Wednesday that it has initiated the process to shield itself from creditors by filing an application with the Superior Court of Quebec.
Following the application, the court issued an initial order granting the company a 30-day protection period from creditors, preventing them from pursuing new legal actions to recover outstanding debts during this time. Typically, this protection period can be extended during subsequent hearings as companies progress with their restructuring efforts.
Goodfood intends to utilize the creditor protection to restructure its operations effectively. The company plans to seek court approval to engage potential buyers or investors for its business and assets in the future. Court documents indicate that the company faced financial challenges, leading to the decision to seek protection and explore a potential sale due to significant debts owed to creditors.
Although renowned for its meal kit offerings, Goodfood attempted to launch an on-demand grocery division in November 2021, with plans to deliver groceries within 30 minutes. However, by October 2023, the venture proved unsustainable, prompting the company to discontinue the operation.
Despite discontinuing the grocery division, Goodfood retained its workforce of 233 employees. The company assured that it does not anticipate job losses related to the court proceedings but may implement targeted workforce adjustments as needed. Throughout the court process, customers will still be able to place orders, which Goodfood will continue to fulfill.
Goodfood was established in 2014 by Jonathan Ferrari and Neil Cuggy. Ferrari resigned as CEO on August 25, 2025, while Cuggy, who served as president and COO, departed by January 16, 2026, according to court records. Recently, CEO Selim A. Bassoul stepped down earlier this week and was succeeded by Najib Maalouf, who assumed the roles of COO and president.