The Board of Directors of Enorm Biofactory has filed a petition with the bankruptcy court to initiate a reconstruction process. The decision has been made in light of challenges in securing sufficient market demand for the company’s products under current market conditions, as well as an extended ramp-up period that has required a significantly larger financial foundation than initially anticipated.

Enorm was founded with a clear mission: to promote more sustainable food production by utilizing industrial byproducts as the basis for insect-based protein production. With strong support from investors, authorities, and the industry, the Dannish company has built the largest and one of the most advanced insect factories in the Nordics – a facility opened in 2023 with a high level of technological sophistication and unique opportunities for circular resource utilization. Technical and operational challenges during the construction and commissioning of the facility have caused delays, but most critical issues have now been resolved.

“We have built a groundbreaking facility, and we still believe that production can be re-established and brought to full operation within a foreseeable timeframe. However, the market’s reluctance has made it difficult to secure adequate sales and financing,” said CEO Carsten Lind Pedersen, in a press release.

The Board of Directors and shareholders have, therefore, in collaboration with the company’s stakeholders, decided to initiate a reconstruction. The aim is to establish a new foundation for the continuation of the project, possibly in a new structure or with new partners.

“It is with great regret that we have found it necessary to initiate a reconstruction. We have believed in this project and its potential from the very beginning – and we still do. We hope that the reconstruction can lay the groundwork for continuing the project and realizing its sustainable vision,” said Carsten Lind Pedersen.

In the coming period, Enorm Biofactory will work closely with the appointed reconstruction administrator and other stakeholders to identify and realize the options that best support a future-proof use of the built potential. This will likely include insect production, but the facility may also serve as a platform for a broader bio-industrial setup, creating synergies across food, feed, and energy sectors.