Allplants, a manufacturer of plant-based ready meals, is on the brink of bankruptcy and is working with insolvency advisors to find solutions for the brand’s survival, reports thegrocer.co.uk.
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Big losses, negotiations with creditors and the specter of bankruptcy
On November 18, the company filed a notice of intent to appoint an administrator (NOI) with the court. This type of document allows distressed companies time to negotiate with creditors and attempt to reach a business-saving agreement.
Allplants founder Jonathan Petrides told The Grocer magazine that the management team is “working intensively” with restructuring specialist Interpath to explore “all possible options for restructuring, refinancing and ensuring the stability of the Allplants brand.”
The Grocer has also learned that there is a potential buyer interested in rescuing the company.
Since its founding in 2016, Allplants has raised a total of £67 million. Now investors, including venture capital funds and thousands of crowdfunding investors, are facing heavy losses. In June 2023, the company received an additional £2 million from its existing investors, such as Molten Ventures, Felix Capital and The Craftory. The funds joined a multi-million dollar funding round from the summer of 2023 to support a 43,000-square-foot factory expansion in east London.
Capital-intensive omnichannel. A problematic strategy
Allplants has posted significant losses in recent years. In the seven months to March 31, 2023, the company registered a loss of £9.9 million on a decline in revenue to just £4.1 million. In the previous year, losses were £11 million.
The company has already laid off65 employees.
Petrides acknowledged that the 2022/23 fiscal year was “undoubtedly the most turbulent period” in the company’s history. He also stressed that management is aware of the severity of the situation and is focused on continuing to serve customers while protecting the interests of creditors, employees and shareholders.
In recent years, Allplants has evolved from a direct-to-consumer (DTC) model to an omnichannel business, operating in both retail and foodservice. The brand’s products are available on Ocado, Deliveroo Hop and Zapp platforms, among others.
However, the transition from a capital-intensive business model in the face of difficult macroeconomic challenges and declining demand for plant-based products has proven problematic.
Allplants is another brand in the vegan segment that is struggling financially. Meatless Farm, among others, collapsed in 2023.
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