Beyond Meat Sinks as Plant-Based Meat Company Rumored to File for Chapter 11 Bankruptcy

Rumours suggest that Beyond Meat is considering a bankruptcy filing amid falling sales, but the plant-based giant has vehemently denied the claim.

Beyond Meat shares sank 6.5% in premarket trading.

Beyond Meat, the company that put plant-based meat as we know it today on the map, has come out strongly against media reports alleging that it has filed for bankruptcy.

The Californian vegan pioneer has had a tough couple of years, with sales falling further this year and its stock price at a fraction of its IPO value six years ago. Its year-on-year revenue slimmed by 20% in Q2 2025, prompting the company to announce a new round of layoffs and appoint John Boken, managing director of corporate restructuring consultancy AlixPartners, as its interim chief transformation officer.

But the latter development has led some media outlets to speculate (or declare) that the company is filing for Chapter 11 bankruptcy protection. Financial news site The Street‘s headline states Beyond Meat “is headed” towards bankruptcy, while UK newspaper The Independent also nodded to the rumour in its URL.

Indian publications The Economic Times and Hindustan Times also reported on the claim. They based their reporting on lawyer John T Orcutt’s blog, which said “reports confirmed” the news, but did not post a source. A host of other outlets have disseminated the rumour, including a vegan news publication.

But before the story spiralled, Beyond Meat came out with a strong statement refuting the reports. “Recent media stories suggesting that Beyond Meat filed for bankruptcy are unequivocally false,” the company tweeted.

“We have not filed nor are we planning to file for bankruptcy. Go Beyond.”

Beyond Meat hired restructuring expert amid layoff plans

In 2024, Beyond Meat recorded its lowest revenue in five years, reaching just $326M. But in the first six months of 2025, it has posted just $144M in sales, a near-15% drop from the same period a year ago.

The company’s continued struggles have forced it to cut back its workforce. In February, it announced that it would lay off 9% of its global workforce, or 64 employees, which included all its staff in China, where it has suspended operations.

And this month, it said it would let go of 44 employees in North America, though it isn’t clear if this is part of the same job cuts as above, or an additional round of layoffs.

Beyond Meat blamed its poor sales performance on softening demand and reduced distribution in US retail, and low sales of its burger products to restaurants internationally. It also hired Boken to drive its operational footprint into the current revenue environment and accelerate margin improvements, with the goal of becoming EBITDA-positive within the second half of 2026.

“It’s a pretty broadly skilled position. I can’t comment on how much time he has. We’re really enjoying him being here. So hopefully, we’ll get some good work done together,” founder and CEO Ethan Brown said in an earnings call.

Could going beyond meat mimics help pay off its debt by 2027?

Beyond Meat has an outstanding debt of $1.1B, owing to convertible notes (a type of investment that begins as a loan and turns into equity) that are due to be paid back in 2027.

The company has been working on several solutions to address the debt. It was reportedly in talks with bondholders to restructure its debt in 2024. And this year, it secured a $100M debt financing facility to enhance its liquidity from Unprocessed Foods,  a wholly owned subsidiary of Ahimsa Foundation, a non-profit advancing plant-based diets.

So you’d think Beyond Meat has at least until 2027 to pay off its debt and avoid bankruptcy. The firm has made a radical move to turn its fortunes around: it’s dropping the word ‘Meat’ from its name to focus on traditional plant proteins.

Its next product, Beyond Ground, features just four ingredients – fava bean protein, potato protein, water and psyllium husk – and isn’t intended to mimic meat. “Going forward, we intend to increasingly use ‘Beyond’ as the primary brand,” Brown confirmed in the Q2 earnings call.

“We have been formally using the shortened mark in certain instances for some time now, and believe it provides for reduced emphasis on facsimile, a now-complicated frame that overshadows the real high-quality protein offerings we provide to consumers, and a widening of our aperture beyond animal protein replicates,” he said.

There have been several bankruptcies and acquisitions in the plant-based industry over the last 18 months, and more consolidation is expected. Aside from low sales, a lack of investment is also to blame. In Q2, plant-based companies only raised $127M, and this included the $100M secured by Beyond Meat.

That deal shows that the company still has some clout amid a dire investment landscape, and it will hope to use this to return to success before it’s too late.