Allplants has initiated steps to appoint administrators in a bid to avert insolvency, signalling a pivotal moment for the plant-based ready meal company.
Allplants, a notable player in the plant-based ready meal market since 2016, has filed a notice of intention to appoint an administrator. This strategic move is intended to provide the company with the necessary time to negotiate a rescue deal, as confirmed by The Grocer. Founder Jonathan Petrides conveyed that the executive team is collaborating with recovery specialists Interpath to explore all avenues for restructuring and refinancing the business, aiming to ensure its long-term viability.
Despite its financial struggles, Allplants has seen considerable success in previous years. Earlier this year, the company secured a funding injection of £1.8 million. Additionally, in 2023, the brand achieved a significant milestone by selling over six million meals shortly after its launch on platforms like Ocado and Planet Organic, along with various independent UK stores. These accomplishments, however, have not shielded the company from financial difficulties.
Allplants has faced significant financial setbacks, reporting losses of £9.9 million for the seven months ending 31 March 2023, with sales falling to £4.1 million. This is a stark contrast to the previous year, where losses amounted to £11 million. Petrides described the period as an exceptionally challenging time for the company. Despite these challenges, the company’s priorities remain delivering high-quality service to customers and safeguarding the interests of creditors, employees, and shareholders.
The decline in demand for vegan products has not been exclusive to Allplants. The broader market has seen similar trends, with other brands like Meatless Farm and VBites going into administration and Beyond Meat implementing cost-cutting measures. CEO changes and losses of £63 million were also reported by Quorn owner, Marlow Foods, due to reduced sales.
Currently, there is a potential buyer interested in acquiring Allplants; however, if negotiations fail, the company may face administration. The situation reflects a wider trend in the market where plant-based companies are struggling to maintain growth amidst fluctuating demand.
As Allplants negotiates its future, the outcome will likely impact both the company and the broader plant-based industry, highlighting the challenges faced by such businesses in today’s economic climate.
