Goodfood Market Corp., whose stock sank Friday after the meal-kit company announced a significant impairment and a covenant breach, has had conversations with other parties about partnerships and its chief executive officer didn’t dismiss the possibility of an outright takeover.

In an interview Friday, Goodfood CEO Jonathan Ferrari said Goodfood has had “ongoing conversations, whether it be partnerships or other types of conversations.”

“I think we can't hide that there are some pretty large macro-economic factors that make this operating environment incredibly difficult for Goodfood; so including inflation, commodity pricing, certainly the consumer over time is going to become more stretched as we look into 2023,” he said.

“So we're thinking about really the best ways that we can manage our business and our strategy to face these headwinds and emerge as a really strong business that has years of profitable growth ahead.”

THE END OF GOODFOOD ON-DEMAND

In a press release Friday, the company announced plans to end its 30-minute delivery service, and said it expects to book a non-cash impairment of as much as $50 million in its fiscal fourth quarter. As well, the company disclosed a covenant breach and said it’s hoping to secure a revised credit facility with its lenders. 

“While we are pleased with the progress we have made, looking forward, the operating investments necessary to bring 30-minute deliveries to an attractive level of profitability would require significant additional capital and operating expense investments,” the press release stated.

Goodfood was among the companies that rode a pandemic boom as COVID-19 disrupted everyday life. Its stock price surged almost 369 per cent from the start of 2020 to its peak of $14.53 per share in January 2021. Since then, its shares have crumbled all the way to penny-stock territory in the last month. 

OMNICHANNEL ENVIRONMENT

 Looking forward, Ferrari said part of the “brand is going to live in a direct-to-consumer space” with its weekly food deliveries, while the other part will be focused on how Goodfood can live across multiple channels.

“We're certainly interested in thinking about different ways in which the Goodfood brand can live in an omnichannel environment,” he said.

“Whether that be in retail stores, working with marketplaces, and thinking about how to grow the brand in a more omnichannel way going forward.”