Bolt Threads, the producer of mycelium-based material Mylo,  has reportedly halted the production of its mycelium-based leather alternative, Mylo, due to a lack of funding and inflationary pressures.

Though the product gained early interest from brands like Stella McCartney, Kering, and Adidas, the CEO states that the materials have been slow to reach the market, and Bolt Threads couldn’t secure the necessary funding to scale production. The CEO had also reported laying off workers during the first half of this year.

Analyst QuickTake: Bolt Threads had a good start toward commercializing its Mylo material. It even launched the “Mylo Consortium'' by partnering with brands such as Adidas, Stella McCartney, Lululemon, and Kering, all of who collectively invested in the company to support the production of Mylo. During 2021 and 2022, the company also partnered with MME and Lululemon to scale the production of its Mylo material by the end of 2022. However, the company seems to have been struggling to materialize its plans and retaining investor confidence.