Catering company Avenance pulled out of the £4.5m deal last week. It is understood that Avenance reneged when it calculated it would not be able to afford the cost of staff pension contributions.
It was announced in June that Avenance had been chosen to provide school meals to two-thirds of Cornish schools after a 10-month tendering process. The council is now negotiating an agreement with Scolarest.
A Cornwall County Council spokeswoman said: "The council's priority is to ensure that a quality school meals service will be in place from 1 September.
"We're currently exploring all legal remedies to address the damage caused by the actions of Avenance."
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