Meatless Farm declares bankruptcy after incurring over £17 million in losses during its three-year operation in Europe.
- The company’s move to Amsterdam for European expansion led to significant financial strain and rising costs.
- Despite sales in prominent European supermarkets, the brand struggled with competition and product innovation.
- Efforts to find investors failed amidst global economic challenges, including the pandemic and geopolitical strains.
- Meatless Farm’s financial woes extended beyond Europe, amassing £50 million in losses in the UK.
Meatless Farm, a once-promising vegan brand, has declared bankruptcy following a tumultuous period marked by severe financial losses of over £17 million in its European endeavors. The bankruptcy report, accessed by The Grocer through Dutch law firm De Vos & Partners, paints a bleak picture of the company’s fiscal health, revealing empty bank accounts and overwhelming claims from creditors.
In 2020, the company relocated its headquarters from Leeds to Amsterdam in a strategic attempt to solidify its presence in the European market. However, this shift proved financially detrimental, as operational costs soared, outpacing revenues which amounted to merely €7 million (£6 million). These dire financial circumstances were compounded by accumulating losses of nearly €20 million (£17.2 million) during this period, adding to the substantial £50 million deficit from its UK operations before administration was declared in June.
The bankruptcy report highlights significant debts to various parties, including €1.1 million (£946k) owed to unsecured creditors and more than €600k (£516k) to preferential creditors across Europe. Additionally, UK suppliers were left with £2 million in unpaid obligations. These financial obligations strained the company’s ability to function, leading to its insolvency.
Trustee Els Doornhein of De Vos & Partners attributed the financial downfall to several factors. She noted the inherent difficulties in attracting sufficient investment post-2022, a challenge exacerbated by the pandemic, the war in Ukraine, and deteriorating economic conditions. Furthermore, the brand faced substantial hurdles in expanding its customer base due to heightened competition and a perceived lack of product innovation by major European retailers such as Jumbo, Kaufland, Rewe, and Aldi.
Despite these adversities, the company managed to avoid complete dissolution through a partial acquisition by meat-free startup VFC in June. This intervention came after significant workforce reductions and an unsuccessful attempt to secure new investment. However, the brand’s journey remains a cautionary tale of ambitious expansion in a highly competitive market.
Meatless Farm’s financial struggles underscore the complexities of market expansion amid challenging economic landscapes.
