Meat-alternatives producer Beyond Meat is reportedly in talks with bondholders to restructure the California-based company’s debt.
The bondholders concerned are said to hold $1.1bn of Beyond Meat’s convertible notes and have brought in law firm Akin Gump Strauss Hauer & Feld to assist on the restructure, people close to the situation told The Wall Street Journal.
In turn, Beyond Meat is being represented by Latham & Watkins.
Just Food has reached out to Beyond Meat for comment on the report by the WSJ, which referred to the process as a ‘balance-sheet restructuring’.
The Beyond Burger brand owner has battled with a cash-burn over the past couple of years, using up over $400m in cash in 2022 for instance, as it looked to build more sustainable volumes through price cuts.
Despite delving into its cash reserves, the group has continued to face pressure on its financial performance. In its first-quarter results released in May, the Beyond Meatballs producer’s revenue dropped 18% on the same period in 2023 to $75.6m, while volumes were down 16% year on year.
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The slump in revenues was in line with Wall Street expectations. However, some equity analysts raised concerns over the group’s gross margin, which came in lower than expected.
Beyond Meat CEO Ethan Brown said at the time he was confident that the company’s latest product reformulation and rebrand of its signature plant-based patties would be key in helping the group recover losses.
Brown added the new product was part of a series of measures the business was considering to help it balance the books. “We continue to work to position 2024 as a pivotal year as we strive to achieve sustainable and profitable operations,” he said.
Beyond Meat decided to focus on promoting the health credentials of its new Beyond IV burger in an effort to tackle the misinformation around the health benefits of plant-based meat.
Commenting on the new product, Brown said: “We believe through the nutritionists, institutions and dietitians standing behind Beyond IV, that we offer consumers a delicious yet powerful choice that can help them and their loved ones live healthier lives. The 2024 marketing campaign, which we are rolling out imminently, will bring this message to life.”
