Wild Earth, the vegan pet food company famous for its 2018 deal with Mark Cuban on Shark Tank, has filed for Chapter 11 bankruptcy in North Carolina. Despite the filing, co-founder Ryan Bethencourt says the brand is not finished.
The company listed $2.4 million in assets and $12.6 million in liabilities in court documents. The Chapter 11 process will let Wild Earth restructure its debt while continuing operations.
Bethencourt told Triangle Business Journal that Wild Earth struggled to find venture investors and could not keep up with its venture debt. Its largest creditor, Espresso Capital, is set to take control of the business.
Bethencourt, who owns 9.2% of the company, hopes to stay involved as the company becomes “leaner” and more focused. “I don’t think this is the end of the Wild Earth story,” he said.
Bethencourt founded Wild Earth in 2017 after becoming concerned about pet food’s environmental and health impacts. The company quickly gained national attention when Bethencourt secured a $550,000 investment from Mark Cuban on Shark Tank. Cuban still owns about 0.5% of the business.
Wild Earth’s product range mainly includes dog food, treats, and supplements. Recently, the company expanded into cat food, launching a Unicorn Pate product in August. It also explored cultivated meat, developing a chicken broth topper for dogs, but paused this due to financial challenges.
Bethencourt described the plant-based meat market as “brutal but inevitable,” citing stiff competition from large food companies. He stressed the importance of creating great products with competitive prices to succeed.
Since its start, Wild Earth has raised nearly $50 million from investors and has sold about $42 million worth of pet food. It aimed for $15 million in sales in 2024, focusing on cost-efficient growth.
The bankruptcy filing showed Wild Earth earned $10.7 million in revenue in 2023, dropping to just under $7.6 million in 2024. So far this year, sales stand at $590,000. Despite these numbers, Bethencourt told Triangle Business Journal the company was profitable in 2024.
The company owes $259,000 to Animal Nutrition for kibble trials, $319,000 to Barrett Petfood Innovation for inventory, and $110,000 to Scot Wingo’s Triangle Tweener Fund. Its largest investors are VegInvest Trust (25% stake) and At One Ventures ($12.8%).
The filing cites supply chain issues caused by COVID-19 and lower sales due to inflation, with Wild Earth products priced 20-30% higher than traditional pet food. The company also planned an expensive rebrand and packaging redesign to enter 300 big-box retail stores.
“Despite profitability, the company could not raise enough capital to cover secured debts,” the filing states. “When it became clear funds could not be raised, the company sought potential buyers.”
Wild Earth’s difficulties reflect broader struggles in the plant-based industry, which saw a 64% drop in venture capital funding in 2024. Other startups like Akua, Sunfed Meats, Willicroft, Mycorena, and Allplants have also faced bankruptcy or shutdowns recently.
Related Topic:
