TORONTO — Food delivery app Foodora has filed for insolvency as it prepares to close its Canadian operations in a couple of weeks.
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).
Foodora owes more than $4.7 million to hundreds of restaurants, liquor outlets, governments and employees, according to a court filing by trustee Grant Thornton Ltd. on Monday.
The largest claim of nearly $1.1 million is for office employees and $243,608 for Riders Employees.
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.
The company, which has operated in 10 Canadian cities over the last five years, plans to cease operations just before midnight on May 11.
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.
This report by The Canadian Press was first published April 29, 2020.
The Canadian Press