Meatless Farm faced significant financial challenges, culminating in losses of over £17 million in Europe before bankruptcy.
- The bankrupt vegan brand struggled with high operating costs and insufficient revenue since relocating to Amsterdam in 2020.
- The bankruptcy report highlights Meatless Farm’s failure to secure enough investment to sustain its operations.
- Despite partnerships with major European supermarkets, the brand’s products failed to stand out in a competitive market.
- Economic difficulties, including the pandemic and geopolitical tensions, hindered Meatless Farm’s growth and investment opportunities.
Meatless Farm, a prominent player in the plant-based food sector, accrued over £17 million in financial losses in its European operations before declaring bankruptcy. This significant shortfall was primarily attributed to high operational expenses following the strategic relocation of their head office from Leeds to Amsterdam in 2020. The move was intended to enhance their service within the European mainland, yet it resulted in costs that exceeded the company’s revenue capabilities.
The newly accessed bankruptcy report from the Netherlands disclosed that Meatless Farm’s bank account was almost depleted, with outstanding claims reported as ‘sky-high.’ Between 2020 and the time of bankruptcy, the company generated revenues amounting to less than €7 million (£6 million) while incurring losses nearing €20 million (£17.2 million).
Additionally, Meatless Farm grappled with a significant £50 million loss accumulated in the UK before seeking administration in June. Subsequently, bankruptcy proceedings commenced in the Netherlands, further cementing the brand’s dire financial condition. Substantial amounts were owed to third-party warehouse owners in the Netherlands tasked with product delivery, alongside unsecured and preferential creditors in Europe and outstanding sums to UK suppliers.
Trustee Els Doornhein from De Vos & Partners provided insights into the situation, noting, ‘The group could not operate on its own. The board has stated that attracting enough investors to (continue to) inject capital into the company from 2022 onwards became increasingly difficult anyway.’ Factors such as the pandemic, the war in Ukraine, and worsening economic conditions compounded these challenges.
The brand’s efforts to secure a broader customer base in Europe were stymied by intense competition. Though Meatless Farm’s products were available through large supermarket chains like Jumbo, Kaufland, Rewe, and Aldi, these retailers often found the offerings insufficiently innovative.
Eventually, the company faced financial salvation through acquisition by a meat-free startup, after making extensive redundancies and entering administration, marking an end to its independent operations.
Meatless Farm’s story serves as a cautionary tale of strategic missteps and economic pressures in the competitive plant-based food industry.
