A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the company aims to undergo restructuring either through a new owner or with the support of investors. The Montreal-based meal kit provider disclosed on Wednesday that it has initiated the process to shield itself from creditors by submitting an application to the Superior Court of Quebec.
The court has issued an initial order, which typically grants companies 30 days of protection from creditors, preventing them from initiating new legal actions to recover debts during this period. The creditor protection duration is commonly extended during subsequent hearings as companies delve further into their restructuring or winding-down processes.
Goodfood intends to restructure and views the creditor protection as essential in providing the necessary time and flexibility to achieve this goal. The company plans to seek court approval to solicit potential buyers or investors for its business and assets in due course.
According to court documents, the company has found itself in a position where it owes significant amounts to creditors. While popular for its pre-measured ingredient kits and recipes for customers, Goodfood ventured into an on-demand grocery service in November 2021 with plans to deliver groceries within 30 minutes. However, by October 2023, the initiative had to be discontinued due to profitability challenges.
Despite discontinuing the grocery operations, Goodfood has retained 233 employees. The company has assured that there are no expected job losses related to the court proceedings but indicated the possibility of targeted workforce reductions.
Throughout the court proceedings, customers will still be able to place orders that Goodfood will continue to fulfill. Goodfood was founded in 2014 by entrepreneurs 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, according to court records.
Recently, CEO Selim A. Bassoul resigned, and Najib Maalouf, the former COO and president, succeeded him.