Goodfood seeks creditor protection as Montreal meal-kit company pursues sale or new capital
Goodfood has asked Quebec’s Superior Court for a formal sale and investment solicitation process under the CCAA as it searches for a buyer or fresh financing.
Goodfood files for PSVI under the CCAA
Goodfood announced Wednesday before markets opened that it has applied to the Quebec Superior Court to launch a formal process of solicitation of sale and investment (PSVI) under the Companies’ Creditors Arrangement Act. The Montreal-based meal-kit and online grocery specialist said the move is intended to preserve the company’s value while it seeks a transaction or new capital.
The company made clear no sale or investment has yet been approved and that it plans to continue operations during the court-supervised process. Goodfood said the PSVI is intended to provide an orderly structure for evaluating offers and protecting stakeholder interests.
Short-term liquidity pressures and upcoming debt
Goodfood is facing acute short-term liquidity pressures, driven in part by a $29 million tranche of convertible debentures that matures in March 2027. The company’s financial statements, released in July, show cash on hand of $4.7 million in June, down from $12.3 million in the same month a year earlier.
Executives have said the decline in available cash and the approaching maturity date require a “more comprehensive solution” than prior measures. Management warned earlier this summer that without new financing, delay of debt or a successful strategic alternative, the company could be forced to curtail certain operations.
Investissement Québec among secured creditors
Among Goodfood’s creditors is Investissement Québec, which participated in a private placement in 2023 and purchased nearly $10 million of the company’s subordinated convertible debentures. That investment carries a stated interest rate of 12.5 percent.
Goodfood’s statement notes the involvement of institutional creditors as it seeks a process that will maximize value for all stakeholders. The company will work under court supervision to solicit and evaluate offers from potential buyers and investors while preserving the business where possible.
Subscriber decline and shifting consumer trends
Goodfood’s customer base has contracted significantly since the peak of pandemic demand. The company reported roughly 48,000 subscribers in June, a sharp decline from about 321,000 users in the comparable quarter of 2021. Executives pointed to the return of out-of-home dining, consumer price sensitivity and increased grocery competition as factors in the erosion of recurring orders.
The company’s strategic pivots over recent years — including a brief push into online grocery and other business lines — failed to restore prior growth rates. Goodfood also drew investor attention when it added cryptocurrency holdings to its balance sheet, a move that surprised some shareholders and analysts.
Executive turnover and board changes
Goodfood has undergone a series of senior departures amid the company’s efforts to stabilize. Jonathan Ferrari, who served as chair and chief executive, left the company earlier this year, followed by co‑founder and chief operating officer Neil Cuggy. Businessman Selim A. Bassoul, who had been recruited last year to lead a turnaround, resigned this week after saying he would attempt to reposition the company within an 18‑month horizon.
The company also announced the resignation of director Terry Yanofsky, who said professional commitments would prevent her from participating in the PSVI. In recent weeks Goodfood’s vice-president of finance, Vanessa Hadida, also stepped down. Management has said the court process should not immediately affect the pay or jobs of the company’s roughly 230 employees, although it did not rule out “targeted adjustments” if necessary.
Market reaction and shareholder impact
Goodfood’s stock remained thinly traded on the Toronto Stock Exchange, trading at roughly three cents in mid‑morning trading on Wednesday and down about 90 percent year to date. The company cautioned investors that the PSVI and any resulting transaction could significantly affect equity holders and that the value of current shares may be materially reduced depending on the outcome.
Analysts and market observers note that the PSVI route is frequently used to preserve business operations while a court‑supervised solicitation uncovers potential buyers or investors willing to inject capital under defined terms. For unsecured creditors and shareholders, the process can lead to a range of outcomes, from negotiated restructurings to sales that prioritize secured creditor recoveries.
Goodfood said it will provide updates as the court process progresses and as it evaluates any binding offers that may be submitted through the PSVI. The company emphasized its intention to operate throughout the solicitation period and to seek a transaction that will maintain as much of the business and its customer relationships as possible.
