Ynsect Files Safeguard Plan Amid Financing Challenges

French insect-based ingredient manufacturer Ynsect has filed for a safeguard plan after struggling to secure sufficient financing for its expansion efforts, the company announced on Thursday. Despite the financial challenges, Ynsect expressed optimism about securing investments from several potential backers.

The safeguard procedure aims to facilitate the company’s restructuring while maintaining its operations, preserving jobs, and managing its financial obligations.

Last year, Ynsect shifted its focus to high-margin markets, such as pet food, and implemented cost-cutting measures, including closing a production plant and reducing its workforce. The company had successfully raised €160 million from investors during that time.

Ynsect noted that while discussions with potential investors have progressed, delays in finalizing the fundraising have not aligned with the financial pressures the company currently faces.