The power has been shut off at Meati’s fermentation plant in Thornton, Colorado, as the firm explores the path forward following a tumultuous few months.
According to one former employee: “The power went off at the plant last week. There were only maybe 4-5 people still working from the plant, mostly just taking care of the building and assets as production has not run since the layoffs [on November 4].
“The landlord and representatives from the fire and police departments evicted the remaining employees from the building after deeming it unsafe due to lack of electricity,” added the source.
Thornton plant ‘unprofitable and unsustainable’
The move comes a month after the new owner of the firm—Meati Holdings, run by Yasir Abdul from “As Seen on TV” informercial company InvenTel—issued a press release describing the Meati brand as “poised for growth,” but acknowledged that its production facility was “unprofitable and unsustainable.”
A Meati spokesperson did not comment on the status of the plant, but told AgFunderNews: “Right now, all options are being explored to see which one makes the most sense for profitability.”
According to one former employee, “Before we were laid off, we had been working with a co-manufacturer in Denver for a new ground meat SKU but were providing all materials. They were just mixing, forming, and packing for us since we didn’t have the capability yet. We were prepping the formula for launch when the buyout happened in the summer, and when the new owner took over, they required us to reformulate significantly to bring the price down.”
The source added: “Mycelium is still one of the first ingredients on the nutrition facts panel [of the proposed ground product], but in our last month there, they had us testing dehydrated mycelium as a substitute and using it alongside other commercially available vegan proteins to create the product.”
After mass layoffs in early November, a handful of staff were brought back on short-term contracts to pack product that had already been produced, added another former employee, but production effectively stopped six weeks ago.
What’s next?
Moving forward, Meati can either source product from a third party or find a co-manufacturer able to produce its own product, which is made from a strain of filamentous fungus called Neurospora Crassa.
Finding a co-packer to produce Meati’s product would be challenging, however, one industry source told us.
“You have a lot of facilities from the alcohol fermentation industry because people are drinking less, but that type of fermenter is unsuited for mycelium, and pharma bioreactors are not well suited to biomass products that you’re trying to sell for less than $15 a kilo.
“Then take into account some of the other aspects of these processes, which include a unique downstream process, so there’s no pathway to quickly shift to co manufacture if you are open to it and can afford it.”
He added: “Maybe they have enough inventory that can last for a long time, but it seems like an extremely expensive misadventure on the part of Yasir Abdul. This is a guy who’s had a lot of successes, but unfortunately, as so many have learned, it’s really difficult to produce food using biotechnology at food prices.
“My presumption, which is purely speculative, is that they will go into hibernation and try to find some other pathway. I have real sorrow for what’s happening to them, but I just don’t see a pathway out of the morass in which they find themselves.”
A tumultuous year
👉 Things went spiraling downhill in late February when Meati breached a financial covenant tied to revenue and gross profit and lender Trinity Capital swept two-thirds of its available cash.
👉 In May, Meati entered an Assignment for the Benefit of Creditors (ABC) process, an alternative to bankruptcy, with a new entity called Meati Holdings emerging as the successful bidder.
👉 According to a press release issued by Meati Holdings last month: “This court-supervised process resulted in Meati Holdings purchasing the business assets free and clear of all successor liability, alter ego claims, or previous debt.”
👉 Since assuming operational control, Meati Holdings has invested $14.2 million in cash to sustain operations and stabilize the business, said the firm, which has said it plans to extend the Meati product line, rebrand, and participate in upcoming trade shows. “With InvenTel’s reach across television, e-commerce, and retail, Meati will be in every freezer in America.”
Further reading:
New owner now controls Meati ‘debt-free’; rebranding planned in 2026
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”
