A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the company seeks to undergo restructuring either through new ownership or with support from investors. The Montreal-based meal kit company revealed its move towards safeguarding itself from creditors by filing an application with the Superior Court of Quebec.
The court has granted an initial order, typically providing a 30-day shield from creditors, preventing them from initiating new legal actions to recover debts during this period. The protection duration can be extended in subsequent hearings as companies progress with their restructuring efforts.
Goodfood’s objective with the creditor protection is to restructure its operations, utilizing the granted time and flexibility. The company intends to seek court approval to engage potential buyers or investors for its business and assets.
Court filings indicate that financial challenges led Goodfood to seek court protection and explore a potential sale due to outstanding debts. Despite discontinuing an on-demand grocery venture initiated in November 2021 to achieve profitability by October 2023, the company retained 233 employees.
Goodfood assures customers that orders can still be placed and fulfilled during the court proceedings. The company, co-founded by Jonathan Ferrari and Neil Cuggy in 2014, saw Ferrari resign as CEO in August 25, 2025, while Cuggy, the former president and COO, departed by January 16, 2026. Recently, CEO Selim A. Bassoul stepped down and was succeeded by Najib Maalouf, the current COO and president.