It has been a busy news week for Planet Organic, culminating in the revelation that the organic retailer has filed a notice of intention to appoint administrators.
Ahead of this, on Tuesday it was reported that Waitrose had pulled out of secret investment talks with Planet Organic, then on Thursday a story in The Grocer claimed the retailer had temporarily suspended orders from suppliers.
Later on Thursday, Sky News cited city sources as claiming that Planet Organic needs a multimillion pound capital injection by mid-April if it is to continue trading, adding that discussions with other interested parties were taking place after Waitrose terminated talks about taking a significant stake in the company.
The move by Waitrose follows an agreement announced in November for Planet Organic’s own-brand health and wellbeing products to be stocked on Waitrose.com and in up to 50 of its stores.
In a message to staff seen by Sky News, MD George Dymond said: “Since the beginning of the year, we have been in advanced discussions with a potential investor with a view to them supporting the business, putting a platform in place to enable us to achieve this growth. Regrettably and unexpectedly these discussions ended last Friday without an investment being agreed. This unfortunately means that the future of Planet Organic is currently uncertain.
We know that this will create more media attention and a lot of questions from our customers – the key message is that it is business as usual for now
“We are still working hard alongside our advisors to explore alternative options to secure investment which will enable us to preserve our amazing business and we remain in dialogue with a number of other interested parties.
“In the meantime, however, we have had to take legal steps to protect the position of the business to afford us the time to be able to find a solution to the challenging situation we face, including filing at court a notice of intention to appoint administrators which is the first step in a potential administration process.
“We know that this will create more media attention and a lot of questions from our customers – the key message is that it is business as usual for now.”
Earlier this year, Planet Organic hired financial advisory company Interpath to advise on its strategic options following two loss-making years. At the time, Dymond also indicated that the ambitious target of 50 stores has been scaled back: “We think 18 stores is sufficient to get the business to profitability and we are in a different paradigm then.”
Ben Shoulder, founder of Planet Paleo, which supplies the retailer, took to Instagram to show his support: “I was saddened to hear about Planet Organic potentially going into administration after the Waitrose talks broke down last week. Whilst the thought of losing one of our key customers is of course concerning, the dominant feeling that came up was a deep sadness that goes way beyond the business we share.
It’s given so many brands their first chance in the industry, so many staff their first step on the ladder and of course many customers with their journey into regaining their health
“I do wonder if there is more we could be doing to support Planet through this period, whether there is awareness that could be raised by suppliers, customers and other stakeholders. I for one would love to see some collaboration and team work to see what we could all do to help save Planet Organic?
“It’s given so many brands their first chance in the industry, so many staff their first step on the ladder and of course many customers with their journey into regaining their health. Its innovation and openness to new products has always been a personal inspiration to me.
“I am still hopeful and positive in my heart that a suitable investor/buyer will materialize and hopefully one that realizes its business opportunity but also the deeper value it offers to its community. My heart goes out to the staff there and the uncertainty they must be experiencing. You’re an amazing team and whatever happens next I trust you will all get through it and deservedly land back on your feet.”
Planet Organic declined to provide NPN with any further details or comment.
