Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the company seeks to restructure under new ownership or with investor support. The Montreal-based meal kit business revealed on Wednesday that it has initiated the process to shield itself from creditors by filing an application with the Superior Court of Quebec. The court has granted an initial order, typically providing companies with a 30-day safeguard against creditors, preventing them from pursuing new legal actions to recover debts during this period.
The creditor protection phase can be extended in subsequent court hearings as companies progress with their restructuring or liquidation plans. Goodfood intends to restructure, citing that the creditor protection will offer the necessary time and flexibility for this process. The company plans to seek court approval to seek potential buyers or investors for its business and assets.
According to court documents, financial challenges have led Goodfood to seek court protection and explore a potential sale due to substantial debts owed to creditors. Despite its primary business of offering pre-measured meal kits to customers, the company ventured into an on-demand grocery service in November 2021, aiming to deliver groceries within 30 minutes. However, by October 2023, the project was discontinued as it failed to achieve profitability.
Although the grocery division was shut down, Goodfood retained 233 employees. The company assures no immediate job losses due to the court proceedings but indicates the possibility of targeted workforce reductions. Throughout the legal process, customers can continue placing orders that will be fulfilled by Goodfood.
Goodfood was founded in 2014 by Jonathan Ferrari and Neil Cuggy. Ferrari stepped down as CEO on August 25, 2025, while Cuggy, who served as President and COO, departed by January 16, 2026, as per court filings. Recently, CEO Selim A. Bassoul resigned and was succeeded by Najib Maalouf, the former COO and President.
