Amycelium-based meat alternative producer Meati Foods is currently navigating through a significant financial upheaval. The company has been compelled to issue a Worker Adjustment and Retraining Notification (WARN) to its 150 employees due to an unforeseen financial setback. This notification, issued on March 7, 2025, outlines the termination of these positions effective May 6, 2025, along with the closure of its manufacturing facility in Thornton, Colorado. The sudden action by a lender, who withdrew two-thirds of the company’s available cash on February 28, 2025, due to a technical default, has precipitated this crisis. Despite previous assurances from the lender, Meati now finds itself scrambling for funds to ensure its survival and continue its mission.

The root cause of Meati's current predicament lies in a series of events that unfolded unexpectedly. A critical juncture was reached when a lender exercised its right to withdraw a substantial portion of the company’s cash reserves due to a technical breach of loan covenants. Specifically, Meati did not meet certain revenue and gross margin targets agreed upon with the lender. Although the company had always met its payment obligations, this unforeseen withdrawal left it financially vulnerable. Stephanie Larson, Meati’s VP of People and Culture, acknowledged the abrupt nature of the situation in her WARN notice, stating that the lender’s actions were entirely unexpected and left little room for preparation.

In recent years, Meati Foods had experienced considerable success, nearly doubling its revenue in 2024 compared to the previous year and expanding its retail presence by 130%. Additionally, the company ventured into the breakfast market with the launch of its Meati Breakfast Patties in January 2025. These achievements underscore the potential of mycelium-based meat alternatives and highlight the promising trajectory Meati was on before this financial turmoil. CEO Phil Graves emphasized the company’s proactive stance in addressing the crisis, noting active discussions with investors and exploring various funding opportunities to secure Meati’s future. The leadership remains committed to its mission, believing strongly in the transformative power of mycelium in the protein industry.

Despite the challenges ahead, Meati Foods remains optimistic about its long-term prospects. The company is actively engaging with both existing and potential new investors to secure the necessary capital for continued operations. While the immediate future is uncertain, Meati’s commitment to innovation and sustainability in the food sector remains unwavering. The hope is that with sufficient support, the company can overcome this financial hurdle and continue to lead the way in developing sustainable protein alternatives.