App-based food delivery company Foodora has initiated bankruptcy proceedings in Canada and declared some $4.7 million in debt after announcing an abrupt exit from the country earlier this week. Initiating the proceedings does not mean Foodora is formally bankrupt, but it starts an insolvency process to come to an arrangement with creditors owed money. Liisa Schofield, an organizer with CUPW, called Foodora’s bankruptcy proceedings “baffling.”“There’s been an uptick in deliveries in the middle of a pandemic,” she told the Star. Creditors listed on Foodora’s bankruptcy file include government authorities like the Canada Revenue Agency and the provincial workers’ compensation board, as well as company employees who are owed $243,000. In 2018, Foodora left Australia with unpaid debts after it was challenged in court over classifying couriers as independent contractors rather than employees.

Source: thestar April 29, 2020 20:03 UTC