Meal delivery startup Goodfood could be forced to scale back its business after reporting net losses of more than $9 million this fiscal year.
The news: In its recent Market Discussion and Analysis (MD&A) report, Goodfood said it may be forced to “curtail” operations if it can’t shore up financing, delay debts, or become revenue positive. The Montreal-headquartered business, which operates a food production site in Alberta, announced that in the past three fiscal quarters, it has incurred net losses of over $9 million. It also reported that it has $29 million in convertible debentures—corporate bonds that carry the option to convert debt to stock shares—coming due in March of 2027.
From the source: “The Company has relied upon external financing to fund its operations in the past,” a portion of Goodfood’s MD&A reads. “The Company’s business plan is dependent upon generating positive cash flows, the continued financial support of its shareholders or lenders … and/or raising additional funds to finance operations and repay its financial commitments.”
Following the thread: Earlier in its report, Goodfood said the company had negative working capital and was evaluating how best to deal with the convertible debentures poised to mature early next year. Under the terms of its agreement, Goodfood has the option to redeem the debt by issuing common shares ahead of the March 31 deadline. By its own measure, Goodfood would have to issue roughly 173 million shares to cover the debt. That would, in some circumstances, trigger shareholder approval requirements for such a deal.
Final thought: The company’s financial woes come on the heels of regulatory ones. Earlier this month, two of the company’s meal products were recalled by the Canadian Food Inspection Agency (CFIA) over concerns that the products contained egg and sesame seeds as unlisted ingredients, potentially exposing consumers to allergens. The CFIA had suspended Goodfood’s safe food license last December over claims the company failed to comply with food safety requirements. It was reinstated in January of 2026. These troubles come not long after both of the company’s co-founders stepped away from the business within months of one another.
BetaKit’s Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta.
Feature image courtesy Goodfood.