In what can be adjudged to be a crucial move, Food delivery app Foodora has filed for insolvency as it prepares to close its Canadian operations soon.
We gathered that the subsidiary of Berlin-based Delivery Hero SE filed a notice of intention to make a proposal to employees and other creditors under Section 50.4(1) of the Bankruptcy and Insolvency Act (Canada).
According to a court filing by trustee Grant Thornton Ltd, Foodora owes more than $4.7 million to hundreds of restaurants, liquor outlets, governments and employees.
Reports have it that the largest claim of nearly $1.1 million is for office employees and $243,608 for Riders Employees.
Official records have it that Allied Properties REIT is owed nearly $568,000, Canada Revenue Agency $333,333, Revenue Quebec $177,000, Google $179,000, and workplace insurance agencies in Ontario, Quebec and B.C. a total of $419,000.
Specifically, it was stated that the company, which has operated in 10 Canadian cities over the last five years, plans to cease operations just before midnight on May 11.
Meanwhile, the Canadian Union of Postal Workers has filed an unfair labour practices complaint with the Ontario Labour Relations Board arguing it broke the province’s labour law by closing down in order to defeat a union organizing drive.
