A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the company aims to undergo restructuring with new ownership or investor support. The Montreal-based meal kit company disclosed on Wednesday that it has initiated the process to shield itself from creditors by submitting an application to the Superior Court of Quebec.
Following the filing, the court issued an initial order granting the company a 30-day protection period from creditors, preventing them from initiating new legal actions to collect debts during this timeframe. Typically, this protection period can be extended during subsequent hearings as companies progress with their restructuring efforts.
Goodfood’s objective is to restructure, and the creditor protection status will provide the necessary time and flexibility to achieve this. The company plans to seek court approval to seek potential buyers or investors for the business and its assets in the future.
Court documents reveal that Goodfood sought relief from the court and contemplated a sale due to its substantial debt to creditors. While renowned for offering pre-measured ingredient sets and recipes to customers, the company attempted to launch an on-demand grocery service in November 2021. However, by October 2023, the venture was discontinued as it could not attain profitability.
Despite discontinuing these operations, Goodfood retained 233 employees. The company assures that there are no anticipated job losses related to the court proceedings but acknowledges the possibility of targeted workforce reductions.
Throughout the court proceedings, customers can continue to place orders, which Goodfood will fulfill without interruption. Goodfood was founded in 2014 by entrepreneurs Jonathan Ferrari and Neil Cuggy. Ferrari resigned as CEO on August 25, 2025, while Cuggy, who served as president and COO, departed by January 16, 2026, according to court records.
Earlier this week, CEO Selim A. Bassoul resigned and was succeeded by Najib Maalouf, who assumed the role of COO and president.