Montreal's Goodfood seeks creditor protection

Goodfood Market Corp. obtained an initial order under Canada’s Companies’ Creditors Arrangement Act on August 5, giving the Montreal-based meal-kit company court protection while it tries to restructure or find a buyer. The company said it filed in the Superior Court of Quebec’s Commercial Division and wants Raymond Chabot Inc. appointed as monitor in the case. Goodfood said it will keep operating across Canada during the process and continue filling customer orders. The filing comes less than two weeks after the company said it was reviewing strategic alternatives to stabilize its finances and debt levels. ### Why did Goodfood go to court now? Goodfood said on August 5 that “significant near-term liquidity constraints,” including upcoming debt maturities and scheduled interest payments, pushed it to seek court protection. The company said it had considered alternatives and concluded that a CCAA restructuring offered the best chance to preserve value, maintain operations and keep working on its turnaround plan. (cdn.makegoodfood.ca) A July 23 update from the company had already warned that it was reviewing strategic alternatives after releasing third-quarter results on July 21. In that statement, Goodfood said the review was aimed at finding a solution to stabilize its financial position and debt levels, and cautioned that investors could see the value of their investment decrease significantly if those alternatives could not be implemented. (cdn.makegoodfood.ca) ### What does the court order let the company do? The Quebec court’s initial order gives Goodfood time to pursue a restructuring while staying under court supervision. CBC, citing court records, said such initial creditor protection typically lasts 30 days and bars creditors from launching new lawsuits to collect outstanding debts during that period. Raymond Chabot’s public case page said the initial order gives the company time and flexibility to advance its restructuring while continuing to operate, serve customers and implement its restructuring plan. (www2.makegoodfood.ca) The monitor’s page also directs stakeholders to court materials and a questions-and-answers document about the proceedings. ### Is Goodfood trying to sell itself? Goodfood said it intends to ask the court at a comeback hearing to approve a formal sale and investment solicitation process, or SISP. (cbc.ca) If the court approves that process, interested parties would be invited to submit proposals for a sale of, or investment in, the company or its business. Goodfood said no transaction has been selected or approved. (raymondchabot.com) CBC reported that the company is seeking to restructure under a new owner or with help from investors. The broadcaster said court documents show Goodfood turned to the court because it owes millions to creditors and is considering a sale. ### What happens to customers, employees and suppliers? Goodfood said customers can continue to place orders and that it will fulfill them in the ordinary course during the restructuring. (cdn.makegoodfood.ca) The company said management remains focused on serving customers, supporting employees and maintaining relationships with suppliers and other business partners while the case proceeds. (cbc.ca) The company said it employs about 230 people across Montréal, Calgary and Mississauga. CBC reported that Goodfood does not expect job losses directly tied to the court proceedings, but warned it may make targeted workforce cuts. ### How weak were Goodfood’s finances before the filing? Goodfood’s interim financial statements for the period ended June 6, 2026, showed cash and cash equivalents of C$4.7 million, down from C$12.3 million at September 6, 2025. (cdn.makegoodfood.ca) The same filing showed total assets of C$27.3 million and a net loss of C$9.4 million for the first 39 weeks of fiscal 2026. The company said its turnaround efforts had improved operating performance, but not enough to resolve the near-term liquidity pressure. (cdn.makegoodfood.ca) Donald Olds, Goodfood’s lead independent director, said in the August 5 release that the court process would give the company time and flexibility to pursue restructuring and continue its turnaround plan. ### Who is running the company during the process? (cdn.makegoodfood.ca) Goodfood said on August 4 that Selim A. Bassoul resigned as chief executive officer and as a board member, effective August 3. The company’s investor-relations page said Najib Maalouf, previously president and chief operating officer, was named chief executive. The next formal step is the comeback hearing, where Goodfood has said it will seek approval for the sale and investment solicitation process. (cdn.makegoodfood.ca) Raymond Chabot’s case page says court applications, monitor materials and stakeholder information are being posted as the restructuring proceeds. (www2.makegoodfood.ca)