# Fresh Prep Acquires Struggling Meal Kit Provider Goodfood Vancouver-based Fresh Prep secures court-approved purchase of Montréal rival Goodfood amid insolvency. - **Source:** [BetaKit](https://betakit.com) - **Published:** 2026-11-11 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/39ea8962-1570-4e38-bf91-86beb49a50c3 ## Strategic Acquisition Confirmed Vancouver-based Fresh Prep has officially acquired Montréal-based meal kit provider Goodfood through a court-approved sale process. The transaction, announced this past Wednesday, is scheduled to finalize on Friday. While the specific financial terms of the deal remain undisclosed, the move marks a significant consolidation within the competitive Canadian meal delivery market. ## Operational Integration Plans Following the deal's closure, Fresh Prep will absorb approximately 30,000 active Goodfood subscribers into its existing delivery network. The company also plans to retain a significant portion of Goodfood’s current workforce. This integration allows Fresh Prep to solidify its market presence in Québec while expanding its service footprint into the province of Saskatchewan. ## Goodfood Financial Decline Goodfood faced a difficult period leading up to this sale, characterized by a 21-percent drop in net sales. By July, the company admitted that mounting debts might force a total cessation of operations. Consequently, the firm sought formal creditor protection in August, shortly after the resignation of its chief executive officer, Selim Bassoul. ## Regulatory and Leadership Challenges The company's struggles were compounded by internal and external pressures throughout 2025. Both co-founders departed the business within a few months of each other. Additionally, the Canadian Food Inspection Agency temporarily suspended the firm's safe food license due to undisclosed allergens, though the license was eventually reinstated this past January. ## Pandemic Demand Shift Goodfood struggled to maintain the record-breaking revenues it achieved during the 2021 COVID-19 pandemic, when home delivery demand surged. Despite efforts by leadership to implement a more resilient operating model, the company could not replicate that growth. The subsequent decline in consumer demand proved fatal for their long-term financial sustainability. ## Fresh Prep Market Position Fresh Prep enters this acquisition from a position of relative strength, having been recognized on The Globe and Mail’s list of top growing companies last year. The firm reported a 118 percent revenue growth rate over three years. With over 700 employees, it currently identifies as the largest Canadian-owned meal delivery company. ## Leadership Perspectives Goodfood chair Donald Olds expressed satisfaction with the outcome, highlighting the diligence of the sale process. He noted that the transaction ensures a seamless transition for customers while providing employment opportunities for staff. The company emphasized that Fresh Prep is a quality Canadian operator capable of maintaining the service standards customers expect. ## Future Industry Outlook This acquisition highlights the ongoing volatility in the meal kit sector as companies struggle to balance growth with profitability. By absorbing a competitor, Fresh Prep aims to achieve greater economies of scale. Observers will now monitor how effectively the company integrates these new customers and manages the expanded geographic operational requirements. ## Sources covering this story - https://betakit.com/fresh-prep-to-acquire-meal-kit-service-goodfood-in-court-approved-sale/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._