Allplants, a plant-based meal brand, is in distress, seeking a rescue deal to avoid insolvency.
- The company has filed a notice to appoint an administrator, aiming to negotiate a deal.
- Founder Jonathan Petrides and his team are exploring restructuring and refinancing options.
- Despite past funding and success, financial losses have been significant for Allplants.
- The challenges reflect a broader downturn in demand for vegan products.
Allplants, known for its plant-based ready meals, is grappling with severe financial difficulties and pursuing a rescue strategy to prevent it from falling into insolvency. The firm recently filed a notice of intention to appoint an administrator, a legal step designed to provide time for negotiating a potential rescue deal. This proactive measure highlights the urgency of the situation Allplants faces as it seeks to remain viable in a challenging market environment.
Founder Jonathan Petrides reveals that the company’s executive team, in collaboration with the recovery firm Interpath, is evaluating all feasible options for restructuring and refinancing to ensure the brand’s sustainability. Petrides emphasizes that the team is “working tirelessly” to safeguard the company’s future and is currently in discussions with a prospective buyer interested in supporting Allplants’ recovery efforts. This interest, however, does not guarantee a resolution, and the absence of a successful agreement may lead the company into administration.
Since its inception in 2016, Allplants has secured multiple funding rounds, including a significant cash injection of £1.8 million in June. The brand achieved notable sales success, surpassing six million meals sold within a brief period after launching in major UK outlets such as Ocado and Planet Organic. Despite these achievements, the financial figures paint a stark picture of the company’s struggles. In the seven months leading to March 2023, Allplants reported a substantial loss of £9.9 million, following an £11 million loss the previous year, with sales revenue dwindling to £4.1 million.
Founder Petrides provided insight into the company’s financial challenges, describing recent times as the “most intensively choppy waters” ever navigated by Allplants. His focus remains on delivering excellent service to customers while protecting the interests of creditors, employees, and shareholders. Allplants’ challenges occur alongside difficulties faced by other plant-based brands, suggesting a wider trend affecting the vegan food market. Companies like Quorn, Meatless Farm, and VBites have also experienced financial hardships or shifts in strategy due to declining demand for vegan products.
Allplants’ future remains uncertain as it continues discussions for a potential rescue deal amidst broader industry challenges.
