New Wave Foods, a California-based alternative seafood company, which closed its doors in November last year, has entered into assignment for the benefit of the creditors – an alternative process to bankruptcy wherein a company’s assets are liquidated.

This announcement comes after the company, which produced plant-based “shrimp” products, completed a successful series A funding round in 2021, raising $18 million from investors. Despite this apparent initial success, the alternative seafood start-up was “indebted to various creditors and is unable to pay its debts in full,” according to the official assignment document.

“Although we were gaining momentum in 2023 and had secured a major customer for 2024 sales, we couldn’t outrun industry headwinds,” said Michelle Wolf, co-founder and chief executive officer at New Wave Foods, in an interview with AgFunderNews.

“Our focus had been on healthy business fundamentals since I became CEO in late 2021 and I’m proud of what we achieved. I believe New Wave has been one of the stepping stones toward more sustainable eating, whether by delighting diners, inspiring competitors, or advancing plant-based innovation,” she added.