Beyond Meat’s shares have dropped after the company initiated discussions with bondholders about a balance-sheet restructuring.

It is understood that the group of bondholders, which have taken interest in the vegan brand‘s $1.1bn (£846.1m) of convertible notes, are working with law firm Akin Gump Strauss Hauer & Feld to help with this process, the Wall Street Journal reported.

News of Beyond Meat’s potential financial readjustments sent its shares plummeting by 13%, and follows in the wake of an already challenging couple of years for the plant-based brand.

Demand for plant-based options has waned in recent years as the cost-of-living crisis has impacted consumer wallets, leaving Beyond Meat with slumped sales and volumes down 16.1% earlier this year.

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However, chief executive Ethan Brown remained positive and said it would ramp up Beyond Meat’s product range with the launch of a new innovation ‘Beyond IV’, a fourth-generation product of Beyond Burger and Beyond Beef.

Brown said: “In Q1, we made solid progress against our 2024 priorities, including: hitting our first quarter revenue objective; reducing operating expenses and cash consumption year-over-year; bringing production in-house to reduce costs and improve quality; and commencing shipments of Beyond IV to our customers, to the praise of nutritionists and consumers alike.

“Together with measures we are exploring to bolster our balance sheet, we continue to work to position 2024 as a pivotal year as we strive to achieve sustainable and profitable operations.”

Beyond Meat has been contacted for comment.