This was expected, but Ynsect has now made it official. The startup, specialising in insect-based protein production, has filed a request with the Commercial Court of Évry to enter judicial reorganisation. Already in a safeguard procedure since last September, the company stated that it "was unable to reach an agreement on the financing of a recovery plan, despite extensive negotiations and efforts that were made." In these circumstances, and given the cash flow deadlock identified by the company at the end of March, it now considers the presentation of a recovery plan to be clearly impossible. Therefore, it hopes that the Commercial Court of Évry will convert its safeguard procedure into judicial reorganisation. According to the company, this would "offer potential buyers, who have shown interest, and any new ones, a different legal framework that is better suited to quickly resuming the company's activities." The company also stressed that it is "more than ever actively seeking one or more buyers."
Unlike a safeguard procedure, judicial reorganisation allows for the complete or partial sale of the company's assets as part of a transfer plan. This seems inevitable in the case of Ynsect. The company is on the brink of insolvency, with only a few weeks of cash left. Only a total or partial takeover of its activities could help it relaunch. That is why the company specifies that it is "more than ever actively seeking one or more buyers as part of a transfer plan. Potential buyers are already invited to contact the judicial administrator." In this case, the judicial administrator is Hélène Bourbouloux, named "best judicial administrator in the world" in 2024, and involved in the takeovers of Orpéa and Casino.
Who could save Ynsect? Several names have been mentioned as potential saviours for the company. According to Les Echos, Nestlé has shown commercial interest in the company, as has another food industry giant, Mars, according to Usine Nouvelle. Both have "pet food" operations, a key segment of Ynsect's strategy.
According to our information, Bpifrance could also contribute, provided they find another partner. Last week, we mentioned a Singaporean fund that could share the risk with them. At this stage, Ynsect has not yet received any takeover offers.
Ynsect has raised €600M since its creation, with its most recent round of funding raising €160M in April 2023. This however has not been enough to offset the financial losses caused by the two-year delay in the construction of its massive Poulainville (Somme) plant, a delay largely caused by Covid-19. In 2023, the company lost €80M. With potential takeover offers, Ynsect could yet resurface with a new lease of life but at present 200 jobs are at risk.
