Do Good Foods, a New Jersey-based meat producer that upcycles surplus food from grocery stores and supermarkets for use as nutrient-dense animal feed, has filed for Chapter 11 bankruptcy in the US state of Delaware.

In its bankruptcy filing, the company disclosed an approximate value of USD 500 million for its assets and liabilities. The filing allows the company to continue operating and seek approval for a plan to repay creditors.

The company began operations by securing USD 169 million in funding from asset management giant Nuveen and has since expanded its products across retail chains such as Safeway, Target, and ShopRite. 

Analyst QuickTake: In December 2022, the company revealed its operation of a USD 170 million facility in Pennsylvania and outlined expansion plans for two additional facilities by 2025. It also introduced a new product line called "Do Good Eggs," partnering with Michael Foods, a supplier of egg products in the US, to distribute Do Good Eggs to foodservice venues nationwide in 2023. Despite these plans and developments, which include working with over 200 surplus food collection partners, the company is currently facing financial difficulties to sustain its business.