Quebec meal-kit company Goodfood has filed for creditor protection and is requesting court approval for a formal sale and investment solicitation process.
The application, filed Tuesday in Quebec Superior Court under the federal Companies’ Creditors Arrangement Act (CCAA), also seeks the appointment of Raymond Chabot Inc. as a monitor.
On Monday, the company’s chief executive officer, Selim A. Bassoul, resigned and Najib Maalouf was appointed CEO.
Maalouf previously served as president and chief operating officer.
The company declined to comment on Bassoul’s departure or whether it was connected to the recent filing.
If the court approves the sale and investment process, interested parties would be able to submit proposals to purchase or invest in Goodfood.
“We have made important progress in strengthening our business, but our near-term liquidity pressures require a more comprehensive solution,” said Donald Olds, lead independent director on the company’s board.
“The CCAA process will give us the time and flexibility to pursue our restructuring and continue implementing our turnaround plan.”
In a press release, the company said it has continued to face significant near-term liquidity constraints, including upcoming debt maturities and scheduled interest payments.
Goodfood said it plans to continue operating across Canada while the restructuring proceeds under court supervision, allowing customers to continue placing orders.
“Management remains focused on serving customers, supporting employees and maintaining relationships with suppliers and other business partners throughout the CCAA process,” it said.
Goodfood employs about 230 people across Canada, with operations in Montreal, Calgary and Mississauga.
The company said it does not expect any job losses as a direct result of the court proceedings.
“As part of its ongoing operating improvements, the company may continue to make targeted workforce adjustments where appropriate,” Goodfood said.
The company also said it expects to continue working with suppliers and business partners during the proceedings and anticipates that post-filing obligations for goods and services will continue to be met in the normal course.
Last year, Goodfood had its licence suspended for nine days after the Canadian Food Inspection Agency (CFIA) found it failed to comply with food-safety requirements under the Safe Food for Canadians Regulations.
