Meati’s Thornton Facility Seized Over $7 Million in Back Taxes
The Adams County sheriff has seized Meati’s property in Thornton, Colorado, due to the non-payment of nearly $7 million in property taxes. A distraint warrant, dated December 23, commands the Adams County treasurer to auction off “goods, chattels, and equipment” from the biomass fermentation facility to recover $6,686,757.50 in unpaid property taxes along with interest payments.
This warrant follows a writ of restitution issued by the Adams County Court on December 8, which granted 25 North Investors SPE1 LLC, the landlord at the site, the right to take possession of the premises. In a separate legal matter, 25 North Investors SPE1 LLC was sued in September by Process Piping of Colorado and Emergy Inc (doing business as Meati Foods) over alleged unpaid work amounting to $117,048.
Unsecured Creditors Left with Minimal Returns
A prominent name in the alternative meat industry, Meati entered the Assignment for the Benefit of Creditors (ABC) process in May 2025, seeking an alternative to bankruptcy following a tumultuous period.
In the ABC process, a financially troubled company transfers its assets to a third-party fiduciary. In this case, attorney Aaron Garber managed the sale of Meati’s assets to ensure the best outcome for its creditors. According to a press release from Meati Holdings—now led by infomercial executive Yasir Abdul—this process allowed the new owners to acquire the business assets free from previous liabilities.
Upon taking control, Meati Holdings invested $14.2 million to stabilize operations and settle debts, including a significant property tax obligation. However, a recent motion for final distribution from Garber indicated that only about $140,000 was collected to address claims from unsecured creditors—far less than the $3.1 million owed. The bulk of the funds went toward fees and legal costs, leaving just $10,000 for various claimants, including law and marketing firms, equipment providers, and staffing agencies.
Uncertain Future for Meati
The outlook for Meati is grim. After significant layoffs in early November, a few employees were rehired on short-term contracts to process already produced products. However, according to former staff, the fermentation tanks have been inactive for months. Meati has not responded to requests for comments regarding recent developments, but a spokesperson previously indicated that “all options are being explored to see which one makes the most sense for profitability.”
Looking ahead, Meati may consider sourcing products from third parties or seeking a co-manufacturer for its unique offerings, which are derived from a strain of filamentous fungus known as Neurospora Crassa. However, industry experts warn that finding a suitable co-packer could prove challenging. “I presume they might go into hibernation and attempt to find another pathway,” said one source, who expressed concern over the company’s situation.
A Tumultuous 2025 for Meati
Meati’s difficulties intensified in early 2025, following a breach of a financial covenant related to revenue and gross profit. This resulted in lender Trinity Capital seizing two-thirds of the company’s available cash. Subsequently, the company entered the ABC process, which led to the emergence of Meati Holdings as its new owner.
Since gaining control, Meati Holdings has committed to investing in product expansion and rebranding strategies aimed at recovery, as highlighted in their November press release.
Further Reading
- Exclusive: Meati powers down Colorado plant. ‘All options are being explored,’ says firm
- New owner now controls Meati ‘debt-free’; rebranding planned in 2026
- New owner of Meati insists brand ‘poised for growth’ after mass layoffs; staff say there’s ‘no plan, just a shutdown and silence’
- Mass layoffs at Meati after weeks of payroll glitches
- 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”
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