Embattled meal-delivery company Goodfood is seeking creditor protection amid mounting debt, liquidity concerns, and the resignation of its CEO.\u00a0<\/p>\n
The news: The Montreal-based company announced on Wednesday it would seek creditor protection under the Companies\u2019 Creditors Arrangement Act, a law that allows insolvent companies that owe more than $5 million to restructure their debts and avoid bankruptcy. The news comes just days after Goodfood\u2019s CEO, Selim Bassoul, resigned on Aug. 3. The company has since appointed former COO and Goodfood president Najib Maalouf as CEO.\u00a0<\/p>\n
From the source: \u201cWe have made important progress in strengthening our business, but our near-term liquidity pressures require a more comprehensive solution,\u201d Donald Olds, Goodfood\u2019s lead independent director, said in a statement. \u201cThe CCAA process will give us the time and flexibility to pursue \u2026 restructuring and continue implementing our turnaround plan.\u201d\u00a0<\/p>\n
The context: In a press release issued today, Goodfood said it intends to ask the court for a formal sale and solicitation process that would allow the company to sell its assets, secure new investment, and pursue refinancing. If that is granted, interested parties can submit proposals for the sale of Goodfood, or make an investment in the company.\u00a0<\/p>\n
To date, the company has been implementing an \u201coperational turnaround plan\u201d aimed at reducing cost structure, refocusing on its core products, and \u201cenhancing customer offering.\u201d While Goodfood says that has improved performance, the company continues to face difficult financial realities, including upcoming debt maturities and interest payments.<\/p>\n
Final thought: Today\u2019s announcement follows years of difficulties for Goodfood. In 2025, both of the company\u2019s co-founders left the business within months of one another. Shortly after, the company\u2019s safe food licence was suspended by the Canadian Food Inspection Agency over undisclosed allergens. It was reinstated in January of 2026. Most recently, the company announced it had seen a 21-percent decrease in its net sales, and its recent quarterly reporting declared that the company could curtail operations due to mounting debts coming due next year.\u00a0<\/p>\n
BetaKit\u2019s Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta.<\/p>\n