A Quebec court has approved Goodfood Market Corp.’s request for creditor protection as the company seeks to restructure under new ownership or with financial support from investors. The Montreal-based meal kit provider revealed on Wednesday that it had initiated the process of safeguarding itself from creditors by submitting an application to the Superior Court of Quebec.

Upon review, the court issued an initial order granting the company a 30-day protection period from creditors, preventing them from initiating new legal actions to recover outstanding debts during this timeframe. Typically, this protection period can be extended during subsequent court hearings as companies progress with their restructuring efforts.

Goodfood intends to utilize the creditor protection to restructure its operations effectively, allowing it the necessary time and flexibility. The company plans to seek court approval to explore potential buyers or investors for its business and assets in the future.

Court records indicate that Goodfood faced financial challenges, leading to the need for creditor protection and potential sale discussions due to its substantial debts. Despite experiencing setbacks with an on-demand grocery division launched in November 2021, which had to be discontinued by October 2023, the company retained 233 employees. Goodfood has assured that there are no immediate job losses expected due to the court proceedings but may implement targeted workforce adjustments.

Throughout the ongoing court proceedings, customers can continue to place orders with Goodfood, which will maintain its fulfillment operations. The company, founded in 2014 by Jonathan Ferrari and Neil Cuggy, saw Ferrari resign as CEO in August 2025, and Cuggy, who held roles as president and COO, depart by January 2026, according to court documents.

Recent leadership changes include Selim A. Bassoul stepping down as CEO earlier this week, with Najib Maalouf appointed as the new COO and president.