The aftermath? A bombshell announcement: Zymergen no longer saw significant revenues on the horizon for 2021 or 2022. This revelation sent the company’s stock into a freefall, plummeting by around 70%, and legal battles soon ensued as shareholders sought justice.
Ginkgo Bioworks Steps In, but Challenges Persist
2022 saw another plot twist as Ginkgo Bioworks acquired Zymergen, reshaping its business to focus primarily on services. Yet, even with a change in narrative, the ink on the balance sheet remained red. The subsequent months saw a massive downsizing, with 323 roles being axed.
Describing Chapter 11 as their beacon to enhance asset value via a court-overseen sales process and to stymie the cash hemorrhage, Smith revealed that the company has petitioned the Delaware court for initial motions, which includes permissions to persist in compensating employees and the appointment of a restructuring consultant.
As the story unfolds, a pivotal first-day hearing is slated for Wednesday at 12:30 p.m. EDT.
