Agronutris seeks safeguard plan as investment challenges mount

Haute-Garonne-based Agronutris (718 km south of Paris) filed for the so-called plan de sauvegarde – or safeguard plan – for its holding company, EAP Group, in a French commercial court. The group includes Agronutris’ research and development (R&D) lab and administrative functions.

The plan works similarly to a Chapter 11 bankruptcy in the US, allowing the company to reorganize. The move follows competitor Ynsect’s safeguard plan, which was filed last autumn.

In a statement on the filing, Agronutris attributed the filing to investor caution amid economic uncertainty. “Access to financing has become more challenging due to an uncertain economic environment and investors being cautious following recent developments in the sector and announcements made by other industry players,” they note.

The statement hints at employment impacts, though it’s unclear whether layoffs will affect EAP’s 40 employees.

As part of its plan, Agronutris will offer its R&D expertise to external clients. Officials say the company’s production facilities will not be impacted.

Founded in 2011, the insect protein producer raised millions to industrialize its insect-based protein production process, which it says is now fully operational.

Ynsect in trouble

Alternative protein player Ynsect filed a similar safeguard plan in September 2024. In recent years, the company has expanded its operations with new facilities and investments. It has also expanded its manufacturing to the US, where its protein has been approved for use in pet food.

However, it has struggled to pay off its debts, and after filing for the safeguard plan, the company issued a tender offer in January.

According to AgFunderNews, Ynsect could face court-ordered restructuring or liquidation if no investors come forward. The company did not immediately respond to a request for comment from GlobalPETS.