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Beyond Meat Refutes Bankruptcy Claims Amidst False Media Reports

Beyond Meat moved swiftly to dismiss widespread rumors that it has filed for Chapter 11 bankruptcy, calling an early media report from financial outlet The Street “unequivocally false.” The California-based plant-based protein pioneer issued statements to multiple outlets and on social media stressing that it has not filed—and does not intend to file—for bankruptcy protection.

The speculation followed media coverage of the company’s workforce reductions and appointment of restructuring specialist John Boken as interim chief transformation officer. Several international news outlets reported on claims from a legal blog suggesting the company was preparing for bankruptcy, but Beyond Meat says the assertions misrepresent its situation.
 
While the company says bankruptcy is off the table, Beyond Meat has seen demand soften as competition intensifies and consumers show less interest in processed foods. Cost-cutting measures have included multiple rounds of layoffs, the suspension of operations in China, and reduced product distribution. To bolster liquidity, it recently secured $100 million in financing from an affiliate of the Ahimsa Foundation,
Despite industry headwinds, Beyond maintains it has both the time and resources to execute its turnaround strategy—without resorting to bankruptcy proceedings.

To reinvigorate sales, CEO Ethan Brown has announced a major rebrand, shortening the company’s name to “Beyond,” and pivoting toward simpler, whole-food-based offerings. Its upcoming Beyond Ground product will contain just four ingredients and move away from imitating meat altogether.

This post was originally published on VegNews.com.