One of the major plant-based food companies in the US has filed for bankruptcy and will be undergoing restructuring. On April 7, Atlantic Natural Foods LLC filed the petition for Chapter 11 protection at the US Bankruptcy Court for the Eastern District of Louisiana. The company had previously withdrawn from a merger deal with Above Foods.
Highlights
- Atlantic Natural Foods, one of the major plant-based companies in the US, filed for Chapter 11 bankruptcy protection on April 7.
- The company will be reorganized in the coming months as it attempts to come out of bankruptcy.
- Previously, the company had withdrawn from a deal with Above Foods, which was set to acquire it.
A Legacy at Risk
Atlantic Natural Foods LLC owns favorite vegan brands like Loma Linda, Chik’n, Tuno, Neat, Kaffree Roma, and Modern Menu. The company offers various canned plant-based alternatives, vegan egg and meat substitutes, a caffeine-free coffee alternative, and dedicated food service across the brands.
The company’s legacy traces back to 1890, as Loma Linda was first introduced that year by John Harvey Kellogg. Atlantic Natural Foods was established in 2008 and bought the Loma Linda brand in 2014. It manufactures its products at plants located in Nashville, North Carolina, and Bangkok, Thailand.
“Our Mission is to create affordable, sustainable, healthy, shelf-stable sources of protein for all people & available everywhere. We are working to create a food system that regenerates and renews our planet one seed, one product, one bite at a time,” says the company’s official website.
Bankruptcy Filing Details
As per the petition filed by Atlantic Natural Foods, it has assets worth $10 million to $50 million. The company has $1 million to $10 million in liabilities, with 100 to 199 creditors.
The company has not announced an official reason for the bankruptcy filing. What is known is that it will undergo a reorganization over the next few months.
The History of A Deal That Failed
Atlantic Natural Foods has filed for bankruptcy after a merger agreement with Above Foods did not fall through. The estimated $30 million was mutually terminated last November.
The reasons for the cancellation of the acquisition were disruptions in the supply chain, rising food inflation, and the effects of COVID-19, the companies had said. A joint statement released in November said that the reason for dropping the deal was “a strategic realignment following a comprehensive evaluation of the evolving business landscape.”
News of Atlantic Natural Foods filing for bankruptcy comes amid a broader crisis in the plant-based food industry. There has been a sharp decline in sales and investments in the industry. Over the past several months, news of various companies filing for bankruptcy and announcing mergers and acquisitions has been emerging. Given the situation, the future of Atlantic Natural Foods remains uncertain.
