Image: Kai Pilger | Unsplash
The food delivery company declares $4.7 million in debt and does not list couriers as creditors.
Apr 30, 2020 - EightSix Staff
After announcing it will cease operations in Canada on May 14, Foodora Canada has initiated bankruptcy proceedings.
The initial filings declare $4.7 million in debt to creditors, but this group does not include couriers as they are considered contractors. As per a company statement, final wage payments to couriers are scheduled for May 13.
The union that was working towards representing couriers in Toronto, the Canadian Union of Postal Workers (CUPW), has filed an unfair labour practice complaint alleging that Foodora Canada decided to exit the Canadian market in order to “defeat a union organizing drive," which is a violation of provincial labour laws.
The company maintains it made the decision to shut down simply because it was unable to generate sufficient revenue to warrant staying in business.