Upcycling company Do Good Foods filed for Chapter 11 bankruptcy protection, according to afiling in Delaware.
The Bedminster, New Jersey-based company developed a closed-loop system to convert grocery food that can’t be sold or donated into nutrient-dense animal feed.
In 2021, Do Goodraised $169 millionfrom asset manager Nuveen and built a production facility in Bucks County, Pennsylvania.It launchedDo Good Chickenlast year,which is now availableat select locations in New York City, Philadelphia and Chicago, and partnered with Post Holdings tosell carbon-reduced eggs tofoodservice locations.
According to the bankruptcy filingdated June 16, the company received a commitment of roughly $30 million in new financing to support its new business and fulfill existing contracts. Do Good Foods said the decision to file for bankruptcy is “an important step to put the business in a position to succeed and allow us to continue pursuing our goals.”
Earlier this year, the company’s co-CEO Justin Kaminetold Food Dive that Do Good aims to scale up its operationsacross the U.S., with a goal of upcycling food waste into feed in every major metropolitan area.
As of May, it had processing facilities under construction in Fort Wayne, Indiana, and Selma, North Carolina. Kamine also said the company is working to bring more of its products to restaurants, universities and corporate campuses.
Do Good Foods estimated it hasdiverted at least 27 million pounds of food waste from landfillssince 2021, the year the company was founded.
The bankruptcy filing underscores the economic headwinds nascent companies are weathering amid high interest rates and inflation.
风险资本的乐趣ding in the food and beverage industryhas plunged during the past year. Other companies in trendy sectors that tout the sustainability of their products, includingindoor agriculture company AeroFarmsandplant-based foods brand Tattooed Chef, also filed for bankruptcy in the last month.
