Online grocer and meal delivery company Goodfood has now lost both of its co-founders, as president and COO Neil Cuggy announces he will step down from his role in the new year.
Cuggy was entrusted with day-to-day operations after co-founder Jonathan Ferrari abruptly stepped down as CEO in August.
Cuggy was entrusted with day-to-day operations after co-founder Jonathan Ferrari abruptly stepped down as CEO in August. When Ferrari left, the Montréal-based firm launched a “formal operating review” that it said would help keep it competitive and get through its “next critical phase.”
Cuggy announced Thursday he will step down from his executive roles effective Jan. 16; the company said he will remain on Goodfood’s board of directors until its next annual shareholder meeting in February.
Cuggy’s departure differs slightly from Ferrari’s in that he announced it well in advance. Ferrari left the company completely in September, one month after he shifted from CEO to a board role. Goodfood CFO Roslane Aouameur told BetaKit in an email at the time that Ferrari “didn’t feel he could contribute” to the board as much as he liked. Instead, he wanted to concentrate on his “new projects.”
Ferrari left as Goodfood racked up losses quarter-over-quarter, unable to meet its record revenue of 2021, when the COVID-19 pandemic drove demand for home delivery of groceries and meals. Goodfood reported net sales of $25 million CAD in its Q4 earnings report last month, compared to over $100 million in the second quarter of 2021.
Cuggy said in the Q4 earnings that the company remains “realistic” about the growth outlook for traditional meal kits and costs remaining elevated, adding that the business is being positioned to operate profitably without relying on a macro recovery.
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At its peak, Goodfood traded at over $13 per share on the Toronto Stock Exchange (TSX). Following Ferrari’s departure, Goodfood traded at 20 cents per share, and it now trades at 28 cents per share as of market close on Thursday.
Selim Bassoul, who was tapped as the non-executive chair of the board when Ferrari left, will now become Goodfood’s executive chair, a role he previously held at American theme park operator Six Flags. Bassoul’s now on a new rollercoaster, entrusted with guiding the food delivery company’s strategic direction and working with the board to build a new leadership structure for its next stage of growth.
Goodfood said its board will share updates on permanent leadership appointments in January as it advances its transformation plan.
Feature image courtesy Goodfood.