Allplants, a prominent player in the plant-based ready meal market, is facing significant financial challenges as it files to appoint administrators in a bid to avoid insolvency.
The notice of intention (NOI) to appoint an administrator is typically a strategic move that offers companies a breathing space to negotiate potential rescue deals. In this case, Allplants is working with the recovery firm Interpath to explore restructuring and refinancing avenues. According to founder Jonathan Petrides, the executive team is committed to evaluating all viable options to ensure the brand’s sustainability.
Although there is a glimmer of hope with a potential buyer showing interest in rescuing the business, failure to secure an agreement could lead Allplants into administration. This development comes despite the company’s recent achievements, such as receiving multiple funding rounds, including £1.8m in June 2024.
Allplants, which started in 2016, recorded significant milestones, such as selling over six million meals shortly after launching on major platforms like Ocado and several independent retailers throughout the UK. However, these successes have been overshadowed by financial losses. In the seven months leading up to March 2023, the company reported losses of £9.9m, with sales plummeting to £4.1m, contrasting starkly with the previous year’s loss of £11m.
Founder Petrides described the past financial period as extremely turbulent, akin to navigating “choppy waters”. Despite these challenges, the focus remains on maintaining high-quality service for customers while safeguarding the interests of all stakeholders, including creditors, employees, and shareholders.
Allplants is not alone in facing difficulties in the plant-based market. The sector has seen a decline in demand for vegan options, impacting several brands. Earlier in 2024, the CEO of Marlow Foods, the owner of Quorn, stepped down following a £63m loss in 2023 and a notable drop in sales. Other brands like Meatless Farm and VBites have also succumbed to financial pressure, entering administration amid dwindling sales.
The future of Allplants hangs in the balance as it seeks to navigate its financial difficulties through potential restructuring and rescue deals. The challenges faced by the brand mirror broader issues within the plant-based sector, highlighting the need for strategic adaptation to evolving market demands.
