Bioplastics manufacturer Danimer Scientific Holdings LLC is facing closure due to severe financial struggles. The company recently filed a WARN notice indicating its manufacturing plant in Bainbridge, Georgia, will close, resulting in 82 job losses. Of those employees, 40 were let go on March 14. The closure of this plant is a significant blow to the Bainbridge community, which had benefited from Danimer's operations and job opportunities.

Danimer officials revealed that the company is grappling with a critical cash shortage and has defaulted on some debt obligations. This financial instability has hindered the firm's ability to sustain operations, and without a significant turnaround, Danimer expects to cease operations entirely, including closing its Bainbridge facility. The shutdown is expected to be permanent, leaving many employees without alternative employment options in the immediate future.

Attempts to contact Danimer representatives in Bainbridge for comment were unsuccessful. Local authorities and business leaders have expressed concern about the impact this closure will have on the region's economy. The loss of Danimer, which had once been seen as a promising employer in the sustainable materials sector, is a significant setback.

In December, Danimer secured short-term financing to allow time to find a potential third-party buyer. Despite marketing itself aggressively and exploring numerous transaction structures, the company received only one expression of interest. This interest was contingent upon establishing a key partnership with a major quick-service restaurant chain to supply cutlery. Danimer believed this deal was progressing well; however, the customer recently withdrew, stating they could not establish the anticipated partnership. Additionally, the customer significantly reduced its projected product order volumes. This unexpected development severely impacted Danimer's ability to remain operational.

The inability to secure new investors has left Danimer without the necessary funding to continue operations. The firm’s lenders, along with the sole third-party investor identified, declined to provide further financial support. This lack of funding has compounded Danimer's financial troubles, leaving no viable path forward.

Danimer's financial struggles are reflected in its performance. In the first nine months of 2024, the company recorded $26.5 million in sales, a 26% decrease from the same period in 2023. The firm reported a net loss of $56.7 million during that period, following a $94.6 million loss the previous year. These declining results have significantly impacted Danimer’s stock price, which plummeted from nearly $52 per share on March 20, 2024, to just $1.13 by March 18, 2025.

Danimer produced PHA bioplastics under the Nodax trade name, with applications spanning plastic cutlery, straws, fibers, filaments, films, hot-melt adhesives, and injection-molded items. The company once showed strong growth ambitions, evidenced by its 2021 acquisition of Novomer for $152 million and announced plans for a $700 million expansion in Bainbridge. However, these efforts have ultimately failed to reverse its financial decline. The downfall of Danimer Scientific is a sobering reminder of the challenges faced by innovative companies attempting to revolutionize the plastics industry with sustainable solutions.