Goodfood Market (FOOD.TO) said Wednesday it filed for creditor protection under the under the Companies' Creditors Arrangement Act (CCAA) with the Quebec Superior Court.
The company has been implementing a turnaround plan to streamline operations, cut costs and refocus on its core meal-solutions business, however, "significant" near-term liquidity constraints, including upcoming debt maturities and scheduled interest payments remain, a statement said.
Goodfood will continue serving customers while the restructuring proceeds continues.
"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. "The CCAA process will give us the time and flexibility to pursue our restructuring and continue implementing our turnaround plan."
Goodfood appointed Najib Maalouf as chief executive officer on Tuesday after Selim Bassoul resigned.
It announced that it was reviewing its strategic alternatives at the end of July.
Goodfood shares last traded on Aug. 4, closing at C$0.03 per share.