Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the company seeks to restructure under new ownership or with investor assistance. The Montreal-based meal kit business initiated the process by filing an application with the Superior Court of Quebec to shield itself from creditors. The court’s initial order grants the company a 30-day protection period during which creditors are prohibited from pursuing legal actions to collect outstanding debts.
The creditor protection timeframe can be extended in subsequent court hearings as companies progress with their restructuring efforts. Goodfood aims to utilize this protection to undergo a restructuring process, allowing it the necessary time and flexibility. The company plans to seek the court’s approval to explore potential buyers or investors for its business and assets.
Court documents reveal that Goodfood faced financial challenges, leading to the need for creditor protection and potential sale due to significant debts owed. Although recognized for its meal kit offerings, the company ventured into an on-demand grocery division in November 2021 with plans to deliver groceries within 30 minutes. However, by October 2023, the venture was discontinued as it failed to achieve profitability.
Despite discontinuing the grocery operations, Goodfood retained 233 employees and anticipates no immediate job losses resulting from the court proceedings. The company may implement targeted workforce reductions in the future. Throughout the court process, customers can continue to place orders that Goodfood will fulfill.
Founded in 2014 by Jonathan Ferrari and Neil Cuggy, Goodfood underwent changes in leadership, with Ferrari stepping down as CEO in August 2025 and Cuggy leaving his role as president and COO in January 2026, as detailed in court documents. Recently, Selim A. Bassoul resigned as CEO and was succeeded by Najib Maalouf, who assumed the role of COO and president.
In conclusion, the court’s decision to grant creditor protection to Goodfood Market Corp. marks a pivotal step in the company’s efforts to restructure and secure its financial future.