Beyond Meat is struggling to stay afloat. On August 10, reports confirmed that the company, known for making plant-based meat substitutes, has filed or is headed to file for chapter 11 bankruptcy protection, the law office of John T Orcutt, a North Carolina bankruptcy lawyer noted.
Beyond Meat’s products were meant to mimic the taste, texture, and cooking experience of animal-based meat. Like Beyond Burger or Beyond Beef, their products too are made from proteins derives from plants, fats, and other ingredients that replicate the experience of having meat.
The law office noted that the company’s decline stems from fall in sales, mounting debt, and stiff competition, all the while having to deal with a reality that many still prefer eating meat.
Why Beyond Meat is filing for bankruptcy protection
Beyond Meat has reported a consistent decline in year-on-year revenue, due to a slowdown in the plant-based meat market, the lawyer’s office noted.
Its second quarter revenue fell by 20 percent, missing the Wall Street estimates by a wide margin. Meanwhile, for the quarter ending June 28, revenue dropped to around $75 million as compared to the anticipated $82 million.
The offices of the lawyer further noted that refrigerated plant-based meat sales in the US are down 17.2 percent, while frozen alternatives have fallen 8.1 percent.
The company also accrued over $1.2 billion in outstanding debt. Beyond Meat had only around $117 million in cash as of mid 2025.
The bankruptcy lawyer noted that the bulk of this debt was from convertible bonds which were issued in 2021 and mature in 2027. Since the company’s stock price has collapsed (down to less than 3 percent of its peak value), Beyond Meat is unable to convert its debt and needs to repay the principal in cash funds, which it does not have. This puts the company on the path to default. Notably, Beyond Meat has been in talks with bondholders to explore debt restructuring.
Why Beyond Meat faced problems
The lawyer’s office posited that Beyond Meat faced issues due to the market getting crowded with competitors. Consumers are also shifting away from highly-processed plant-based alternatives to whole-food options like lentils or tofu.
This shift in consumer preferences, combined with increased skepticism about processed foods, and scrutiny from nutritionists ended up hurting Beyond Meat’s appeal, the lawyer’s office stated. While Beyond Meat tried securing new financing and introducing reformulated products, the perfect storm of market conditions and consumer preferences led to a situation where even aggressive restructuring efforts were unable to bridge the widening gap.
