GrubMarket’s acquisition of SPUD brought a prominent Western Canadian online grocer into a global food supply chain technology and e-commerce company. Behind the transaction was Third Eye Capital, whose involvement began during a critical period for SPUD’s former parent and continued through the sale.

Third Eye Capital, a Toronto-based alternative capital provider, financed the business during a 2022 restructuring, then became its owner through a court-authorized transaction and remained SPUD’s financial backer until GrubMarket completed the acquisition in July 2026. Two grocery store banners remained under Third Eye Capital-backed ownership, with the firm also participating in GrubMarket’s Series H preferred stock financing.

Supporting SPUD Through a Financial Crisis

 SPUD operated within the Freshlocal Solutions group when Freshlocal entered creditor protection in May 2022. The group included SPUD’s online grocery operation, Blush Lane Organic Market, Be Fresh Market, and the FoodX grocery technology business.

Freshlocal needed immediate liquidity to continue operating while it pursued a restructuring. Third Eye Capital stepped in to provide debtor-in-possession financing, a form of funding used to cover essential expenses during insolvency proceedings. The court initially authorized C$2.5 million. The facility later increased to C$10 million as the process continued.

The capital supported ongoing operations during a period when Freshlocal could not secure the additional financing it required outside the restructuring process. Freshlocal continued its core operations while searching for a buyer or investor.

When the sale process failed to produce sufficient proceeds to repay the interim financing, the court approved a credit-bid transaction with Third Eye Capital in October 2022. The transaction ultimately converted Third Eye Capital’s position as a secured lender into ownership of the assets.

Preserving a Distinctive Grocery Business

Third Eye Capital took control of a company with a well-established place in Western Canadian food retail. Founded in Vancouver in 1997, SPUD had built its business around home delivery and regional sourcing.

By 2026, SPUD operated distribution centres in Burnaby, Calgary, and Edmonton, totalling over 85,000 square feet. Its refrigerated vehicles served customers across British Columbia and Alberta, and the company maintained relationships with over 800 local farmers, producers, and food entrepreneurs.

At the time of the sale, SPUD had an established management team, logistics network, supplier base, and focus on local products. The business therefore offered GrubMarket an immediate consumer presence in two Canadian provinces, supported by established infrastructure and a recognized brand.

Placing SPUD With a Strategic Owner

GrubMarket completed the acquisition in July 2026. The combination gave SPUD access to GrubMarket’s technology platform, purchasing scale, operational capabilities, and software products for ordering, inventory management, routing, and payments.

Blush Lane Organic Market and Be Fresh Market continued under Third Eye Capital-backed ownership, with those physical retailers remaining separate from the SPUD assets GrubMarket acquired.

Third Eye Capital also participated in GrubMarket’s Series H preferred stock financing, giving the firm a financial interest in GrubMarket.

The outcome offers another example of the popular Canadian alternative capital provider successfully carrying a complex special situations investment through to a strategic transaction.