Goodfood granted bankruptcy protection

Goodfood Market Corp. secured bankruptcy protection under the Companies' Creditors Arrangement Act.

The Montreal-headquartered meal-kit company announced Wednesday (Aug. 5) that it had filed an application with the Superior Court of Quebec to initiate the CCAA process.

Goodfood said it continues to face “significant” near-term liquidity constraints, including upcoming debt maturities and scheduled interest payments.

The news comes just a day after Goodfood announced the departure of CEO Selim Bassoul, with president and COO Najib Maalouf tapped to helm the business as chief executive. 

Goodfood said it plans to request that the court approve a formal sale and investment solicitation process. No transaction has been selected or approved at this time. 

Goodfood said the process would allow it to undergo a financial restructuring while still implementing its “turnaround plan.”

The plan is focused on simplifying operations, reducing Goodfood’s cost structure and refocusing on the company’s core meal solutions business while “enhancing its customer offering.”

Goodfood said it intends to continue serving customers across Canada while the restructuring proceeds under court supervision. It said it also “remains focused on serving customers, supporting employees and maintaining relationships with suppliers and other business partners.”

The company employs some 230 people across Canada, with operations in Montréal, Calgary and Mississauga. 

Goodfood said it does not expect any job losses as a direct result of the CCAA proceedings. But it “may continue to make targeted workforce adjustments where appropriate.”

The company also announced that Terry Yanofsky has tendered her resignation from Goodfood’s board of directors, effective Tuesday (Aug. 4). 

Yanofsky said her prior engagements prevented her from being completely dedicated to the company at this time.