Goodfood, bankruptcy secured?

As a result of a breach of a covenant under our credit facilities in the fourth quarter, the Company entered
into a tolerance letter with its lenders in the fourth quarter, which restricts us from using the revolver portion
of the facilities, under which no amount is currently outstanding. At year-end, the Company had $38 million
of cash and cash equivalents and no amounts drawn from the revolver. Goodfood is in the process of
pursuing a revised credit facility arrangement. There can be no assurance as to such an arrangement being
put in place and in a timely manner, or the terms of such an arrangement.

Source: Goodfood Provides Strategic and Financial Update

But there is more:

As a result, we are announcing that we have or will be closing all our MFCs
and the shut down of our wider 30-minute on-demand offering.

So, apparently on-demand groceries are not in the plans for long-term growth any more.
Management was telling a completely different story at the beginning of 2022.

FOOD is left with just 2 distribution centers, C$38M in cash, and they are about to lose lots of customers.
Inflation is high, interest rates are rising… Bankruptcy is the most likely outcome for Goodfood Market.


Cascades Inc., over promise and under deliver

Cascades Inc. logo

Cascades Inc. Logo

In March 2019, I purchased Cascades Inc. (TSX:CAS) stock for the first time.

Back then, I didn’t read financial reports and was just chasing yield or buying stock because I liked the company.
In general, I was doing lots of stupid things. 🙂
The company is quite well-known; you can see the Cascades logo in lots of places: on food packaging, in public bathrooms, on cardboard boxes and etc. That was a good enough reason for me to buy their shares.
So, I’ve purchased some at a price of $8.36.
Cascades Inc. is a Canadian company. All the prices are in Canadian dollars unless otherwise specified.
Continue reading “Cascades Inc., over promise and under deliver”


Goodfood Market, it’s getting worse

A quick update on this money-losing machine since my initial post about Goodfood.
In Q3 2022, I expected Goodfood Market (TSX: FOOD) to have a smaller loss (compared to Q2) and lower revenue.
Smaller loss because they fired some staff.
Smaller revenue, because they are losing subscribers.

Revenue was ~C$67M, compared to ~C$73M in Q2, which is lower.
The loss was ~C$21M, compared to ~C$22M, which somehow stayed almost the same.

Continue reading “Goodfood Market, it’s getting worse”