Embattled Montréal-based meal kit company Goodfood has been bought out of creditor protection by its Vancouver-based peer Fresh Prep.
The news: The two companies announced the court-approved sale on Wednesday but did not disclose the purchase price. The deal is scheduled to close on Friday.
After closing, Fresh Prep will begin serving approximately 30,000 active Goodfood customers and bring on Goodfood team members. Fresh Prep said the acquisition strengthens its presence in Québec and extends its services to a fifth province, Saskatchewan.
From the source: “We are extremely pleased that the diligent process we have run has led to this announced transaction with Fresh Prep, a quality Canadian company that expects to welcome a significant number of our team members while delivering, in a seamless fashion, the quality meal solutions that our customers are accustomed to,” Goodfood chair Donald Olds said in a statement.
The context: Once closed, the sale will mark the end of a tough run for Goodfood. In 2025, both of the company’s co-founders left the business within months of one another. Shortly after, the Canadian Food Inspection Agency suspended its safe food licence over undisclosed allergens, before reinstating it this past January. Goodfood later reported a 21-percent decrease in its net sales, eventually admitting in July it may have to curtail operations due to mounting debts coming due next year.
In August, Goodfood announced it would seek creditor protection, just days after its CEO, Selim Bassoul, resigned.
Final thought: Despite Bassoul’s efforts to build a more resilient operating model, Goodfood was never able to re-achieve the record revenues it hit in 2021 when the COVID-19 pandemic drove demand for home delivery of groceries and meals. Meanwhile, its new owner, Fresh Prep, made The Globe and Mail’s top growing companies list last year with a three-year revenue growth rate of 118 percent. With over 700 employees, Fresh Prep claims it is Canada’s largest Canadian-owned meal delivery company.
Feature image courtesy Goodfood.