Foodora owes more than $ 4.7 million to Canadian restaurants and creditors


The Foodora food delivery app owes more than $ 4.7 million to hundreds of restaurants across Canada and other creditors after filing for bankruptcy earlier this week.

The company’s decision to exit the Canadian market comes after couriers took steps to unionize, with the Ontario Labor Relations Board recognizing earlier this year that drivers have the right to form a union.

Details of the company’s debts have been revealed in 88 pages of insolvency files which contain the names of each creditor detained at least $ 250. The vast majority of these businesses are restaurants that have not yet been paid.

Some, like a Booster Juice in Mississauga, owe as little as $ 250, while others, like a fried chicken restaurant in downtown Toronto, spend more than $ 2,000. Other creditors, including the Canada Revenue Agency and Google, owe hundreds of thousands of dollars.

Foodora has operations in 10 cities with more than 3000 restaurants available through its application.

CUPW, the union that helped Foodora’s couriers unionize, called the company’s announcement “grossly unfair and unreasonable” for the hundreds of workers who were laid off in the midst of the pandemic.

The company’s bankruptcy plan comes at a difficult time for restaurants that had no choice but to close or offer limited take-out service during COVID-19. Many restaurants have expressed concerns about their ability to stay afloat, a recent survey found that half of the restaurants surveyed did not expect to survive COVID-19.

Foodora announced Monday that it will cease operations in Canada on May 11, five years after it opened. In a press release, the company said it was preparing a proposal “to provide additional recovery to employees and other creditors”, but details of the proposal “have not yet been determined”.

The app will continue to offer food delivery to other countries, including Finland, Austria, Sweden and Norway.

With files from The Canadian Press


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