A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as part of its efforts to restructure under new ownership or with support from investors. The Montreal-based meal kit company revealed on Wednesday that it has taken the initial step to shield itself from creditors by submitting an application to the Superior Court of Quebec.
Following the application, the court issued an initial order providing Goodfood with a 30-day protection period from creditors. This period prohibits creditors from initiating new legal actions to collect outstanding debts during this timeframe. Typically, this protection period can be extended during subsequent hearings as companies progress with their restructuring or winding-down plans.
Goodfood aims to restructure its operations, and the company believes that the creditor protection will afford it the necessary time and flexibility to do so effectively. The company intends to seek court approval to begin seeking potential buyers or investors for its business and assets.
According to court documents, Goodfood faced significant debts, prompting the need for court intervention and consideration of a potential sale. Despite its main business focus on selling meal kit products, the company made efforts to launch an on-demand grocery division in November 2021. However, by October 2023, this venture had to be discontinued due to profitability challenges.
Despite discontinuing the on-demand grocery operations, Goodfood retained 233 employees. The company has indicated that it does not anticipate any job losses directly related to the court proceedings but may implement targeted workforce reductions.
During the ongoing court process, customers will still be able to place orders as Goodfood continues to fulfill them. The company, founded by Jonathan Ferrari and Neil Cuggy in 2014, saw Ferrari resign as CEO in August 2025, while Cuggy, then serving as president and COO, departed by January 2026, as per court records.
Earlier this week, former CEO Selim A. Bassoul stepped down and was succeeded by Najib Maalouf, who assumed the roles of COO and president.