A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the company looks to restructure with new ownership or investor support. The Montreal-based meal kit business recently initiated the process by filing an application with the Superior Court of Quebec to shield itself from creditors.
Typically, companies receive 30 days of protection from creditors with the court’s initial order, preventing the launch of new lawsuits to collect outstanding debts during this period. The protection period can be extended in subsequent hearings as companies progress with their restructuring plans.
Goodfood aims to restructure its operations, and the creditor protection will provide the necessary time and flexibility to do so. The company intends to seek court approval to solicit potential buyers or investors for its business and assets.
Facing significant debts, court documents reveal that Goodfood had to seek relief and explore a potential sale. While recognized for its meal kit services, the company attempted to introduce an on-demand grocery division in November 2021, aiming for quick deliveries. However, by October 2023, the venture was abandoned due to profitability challenges.
Despite discontinuing the grocery operations, Goodfood retained 233 employees. The company anticipates no immediate job losses due to the court proceedings but acknowledges the possibility of targeted workforce reductions.
Throughout the court process, customers can continue placing orders, which Goodfood will fulfill. The company, founded in 2014 by Jonathan Ferrari and Neil Cuggy, saw Ferrari stepping down as CEO on Aug. 25, 2025, and Cuggy, then President and COO, departing by Jan. 16, 2026, according to court records.
Recently, CEO Selim A. Bassoul resigned and was succeeded by COO and President Najib Maalouf. The leadership changes come amidst the company’s efforts to navigate its financial challenges through the restructuring process.