A court in Quebec has approved Goodfood Market Corp.’s request for creditor protection as the company seeks to restructure either under new ownership or with financial backing from investors.
The Montreal-based meal kit service announced on Wednesday that it has initiated a process to protect itself from creditors by submitting an application to the Superior Court of Quebec.
The court issued an initial order, granting the company a typical protection period of 30 days during which creditors cannot file new lawsuits to recover outstanding debts.
This creditor protection duration is often extended in subsequent hearings, allowing companies to navigate their restructuring or liquidation processes.
Goodfood’s intention is to restructure, and the firm states that creditor protection will provide it with the necessary time and flexibility to achieve this aim.
Eventually, the company plans to seek court approval to begin reaching out to potential buyers or investors for the business and its assets.
According to court filings, the company has turned to the court for relief and is considering a sale due to its significant debts to creditors.
While primarily recognized for providing customers with pre-measured ingredients and recipes for meal preparation, court documents reveal that Goodfood attempted to launch an on-demand grocery service in November 2021.
The goal was to offer grocery deliveries within as little as 30 minutes, but by October 2023, the initiative was deemed unprofitable and had to be terminated.
Despite discontinuing those operations, Goodfood has retained 233 employees. The company does not anticipate any job losses related to the court proceedings but has indicated that selective workforce reductions may occur.
Throughout the court process, customers will still be able to place orders, which Goodfood will continue to fulfill.
Goodfood was founded by entrepreneurs Jonathan Ferrari and Neil Cuggy in 2014. Ferrari resigned as CEO on August 25, 2025, while Cuggy, who was the president and COO, departed on January 16, 2026, according to court documents.
Earlier this week, CEO Selim A. Bassoul stepped down on Tuesday, with COO and president Najib Maalouf taking over the role.
