Montreal's Goodfood granted creditor protection from court, may sell business

Montreal's Goodfood granted creditor protection from court, may sell business

Goodfood says creditor protection gives it time to restructure

A Quebec court has granted a request for creditor protection Goodfood Market Corp. made in hopes of restructuring under a new owner or with help from investors.

The Montreal-based meal kit business announced Wednesday that it took the first step toward shielding itself from creditors by filing an application with the Superior Court of Quebec.

The court issued an initial order, which typically gives companies 30 days of protection from creditors, who are not allowed to launch new lawsuits to try to collect outstanding debts during that timeframe.

The creditor protection period is often extended at subsequent hearings, when applicants get deeper into their restructuring or wind down.

In the case of Goodfood, the plan is to restructure and the company says creditor protection will give it the time and flexibility to do so.

It eventually plans to ask the court for permission to start soliciting potential buyers or investors for the business and its assets.

Court documents show the company has had to turn to the court for a reprieve and consider a sale because it owes millions to creditors.

While the company is best known for selling pre-measured sets of ingredients and recipes to customers who fashion them into meals, the court records show it tried to start up an on-demand grocery division in November 2021.

The plan was to deliver groceries to customers in as little as 30 minutes, but court records say by October 2023, the venture had to be abandoned because it could not achieve profitability.

Despite dumping those operations, Goodfood held onto 233 employees. The company says it does not expect any job losses linked to the court proceedings but warns it may make targeted cuts to its workforce.

While the court process plays out, customers will be able to place orders that Goodfood will continue to fulfil.

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Goodfood was started by entrepreneurs Jonathan Ferrari and Neil Cuggy in 2014. Ferrari stepped down as chief executive on Aug. 25, 2025, while Cuggy, then president and chief operating officer, left by Jan. 16, 2026, court documents say.

Earlier this week, chief executive Selim A. Bassoul stepped down Tuesday and was replaced with chief operating officer and president Najib Maalouf.

Tara Deschamps is a business reporter with The Canadian Press