A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the Montreal-based meal kit company aims to undergo restructuring either through a new owner or with the assistance of investors.
Goodfood Market Corp. disclosed on Wednesday that it has initiated the process of safeguarding itself from creditors by submitting an application to the Superior Court of Quebec.
The court has issued an initial order, typically providing companies with a 30-day shield from creditors, preventing them from initiating new lawsuits to collect outstanding debts during this period.
The duration of creditor protection is usually extended during subsequent hearings as the applicants progress with their restructuring or winding-down plans.
Goodfood intends to restructure, and the company believes that the creditor protection period will offer the necessary time and flexibility to do so.
Subsequently, the company plans to seek the court’s approval to commence the process of seeking potential buyers or investors for the business and its assets.
Court documents reveal that the company has resorted to court intervention and is contemplating a sale due to owing significant amounts to creditors.
While Goodfood is renowned for selling pre-measured ingredient sets and recipes for customers to prepare meals, court records indicate an unsuccessful attempt to launch an on-demand grocery segment in November 2021.
The initiative aimed to deliver groceries within 30 minutes, but by October 2023, it had to be terminated as profitability could not be achieved, according to court records.
Despite discontinuing these operations, Goodfood has retained 233 employees. The company assures that there are no anticipated job losses associated with the court proceedings but cautions about potential targeted workforce reductions.
Throughout the legal proceedings, customers will still be able to place orders, which Goodfood will continue to fulfill.
Goodfood was established in 2014 by entrepreneurs Jonathan Ferrari and Neil Cuggy. Ferrari resigned as CEO on August 25, 2025, while Cuggy, who was the president and COO, departed by January 16, 2026, according to court documents.
Earlier this week, CEO Selim A. Bassoul stepped down on Tuesday and was succeeded by Najib Maalouf, the COO and president.