Layoffs Hit Meati Amid Financial Struggles

Today, multiple employees at alt meat company Meati have been laid off, as reported by AgFunderNews. The Colorado-based firm, which has been facing financial difficulties earlier this year, was acquired during the summer by Meati Holdings, a business established by InvenTel CEO Yasir Abdul.

Despite the acquisition, which aimed to stabilize the company known for producing mycelium-based steaks and cutlets through biomass fermentation, communication from Abdul has been sparse since the takeover. Insider discussions suggest that the company is actively seeking additional financing.

Employee Experiences Post-Layoff

One employee, speaking anonymously, stated, “The entire fermentation team has been laid off along with food production staff, leaving only a few managers and maintenance personnel.” They expressed concerns over the lack of communication from Yasir, remarking, “Still zero communication from Yasir.”

Further reports indicated that some were given abrupt notices of layoffs due to financial issues. Affected employees received letters explaining that “This action is the result of financial holds on company accounts and the need to stabilize operations.”

Operational Challenges

The layoffs come in the wake of continued payroll issues that began on September 26, with employees occasionally receiving delayed payments. One employee elaborated, “The excuses changed weekly, initially claiming an email mix-up during a service migration, but now stating cash sweeps due to an ongoing lawsuit.”

Despite assurances about continued healthcare coverage, many employees feel insecure, as Abdul has made no direct statements to staff since July. “It’s an absolute mess. Some people feel like they are being held hostage,” added one employee.

Legal Complications

Records indicate a Mechanic’s lien foreclosure filed in September against Emergy Inc (doing business as Meati Foods), concerning $117,048 in unpaid work, but no other significant litigation against the company is currently evident.

Meati’s Rollercoaster Journey

Meati’s year has proven tumultuous, oscillating between optimism and desperation. Early in the year, staff felt hopeful about the company’s prospects due to new product launches and revenue gains, but this momentum stalled after a financial covenant breach led lender Trinity Capital to seize two-thirds of available cash.

In March, a WARN notice alerted employees to the looming cessation of production unless further funding was secured. By May 2, the company opted for an Assignment for the Benefit of Creditors, which allowed Meati to transfer its assets under an attorney’s supervision, ultimately leading to Abdul’s acquisition.

Looking Forward

Despite the controversies, new hires emerged during the summer, suggesting initial recovery attempts. Employees noted that while Abdul participated in plant visits early on, his involvement has waned. “He presented well initially, but by September, he felt very removed,” shared one worker.

In discussing Abdul’s strategy for the business, employees revealed a focus on expanding direct-to-consumer sales, as well as exploring ground products that blend mycelium and soy. Founded in 2015 by engineers Dr. Justin Whiteley and Dr. Tyler Huggins, Meati has aimed to stand out in the meat alternatives market with its unique fungi-based fermentation approach.

Conclusion

Having garnered over $375 million in funding and partnerships with major grocery chains, Meati’s future remains uncertain. Internal conflicts, coupled with financial strains, invite skepticism and concern among its workforce.

Related Reading

• Exclusive: Meati in trouble again as firm misses payroll. ‘People are in group chats begging for answers’
• Infomercial exec Yasir Abdul emerges as prospective buyer for Meati as firm navigates ABC process
• Breaking: Meati plans “gut-wrenching” mass layoffs amid “bank-induced crisis”
• Meati expands distribution, anticipates positive gross margins by the year end, says CEO