Neil Kaggi took over day-to-day operations after co-founder Jonathan Ferrari abruptly left in August.
Online grocery and food delivery company Goodfood has lost both of its co-founders as President and COO Neil Kaggi announces he will step down from his role in the new year.
Kaggi was entrusted with day-to-day operations after co-founder Jonathan Ferrari suddenly resigned as CEO in August.
Kaggi was entrusted with day-to-day operations after co-founder Jonathan Ferrari suddenly resigned as CEO in August. With Ferrari gone, the Montreal firm launched a “formal operational review” that it said will help it remain competitive and navigate its “next critical phase.”
Kaggi announced on Thursday that he would step down from his leadership positions effective January 16; The company said he will remain on Goodfood's board until its next annual shareholders meeting in February.
Caggi's departure is slightly different from Ferrari's in that he announced it in advance. Ferrari left the company entirely in September, a month after he moved from CEO to a position on the board. Goodfood CFO Roslan Auamer told BetaKit via email at the time that Ferrari “did not feel he could contribute” to the board as much as he would like. Instead, he wanted to concentrate on his “new projects”.
Ferrari left because Goodfood was losing money quarter after quarter and was unable to meet its obligations. record income 2021, when the COVID-19 pandemic led to an increase in demand for home delivery of groceries and food. Last month, in its fourth-quarter earnings report, Goodfood reported net sales of C$25 million, up from more than $100 million in the second quarter of 2021.
Kaggi said in the fourth-quarter earnings call that the company remains “realistic” about the growth prospects of traditional meal kits and costs remain high, adding that the business is poised to operate profitably without relying on a macroeconomic recovery.
CONNECTED: Food delivery company Goodfood's CEO quits abruptly amid recent losses
At its peak, Goodfood traded at over $13 per share on the Toronto Stock Exchange (TSX). Since Ferrari's exit, Goodfood shares were trading at 20 cents a share and is now trading at 28 cents a share at market close on Thursday.
Selim Bassoul, who was appointed non-executive chairman following Ferrari's departure, will now become executive chairman of Goodfood, a position he previously held at US theme park operator Six Flags. Bassoul is now on a new roller coaster, tasked with leading the strategic direction of the food delivery company and working with the board of directors to create a new leadership structure for the next phase of growth.
Goodfood said its board would share an update on permanent executive appointments in January as it progresses its transformation plan.
Image courtesy of Goodfood.
