American Unagi files for Chapter 11 bankruptcy

Waldoboro, Maine, U.S.A.-based American Unagi has filed for voluntary Chapter 11 protection in what the company called a strategic step to facilitate a sale and restructure of the business.

American Unagi broke ground on its USD 10 million (EUR 8.5 million) recirculating aquaculture system (RAS) facility in 2021, and began operating the eel farm in 2023. The company said it is the only large-scale producer of domestically grown eel, and its Gluten Free Eel Kabayaki Fillet product won the Best New Foodservice Product award at the 2025 Seafood Excellence Awards.

In a statement sent to SeafoodSource, American Unagi said the decision to initiate the Chapter 11 process came after “careful consideration” and is intended to enable a smooth transition to new ownership. The company will continue to operate while the Chapter 11 process is underway.

“We’ve obtained financing and the Chapter 11 process will allow us to realign our financial structure with the strong operational foundation we’ve built, giving the company the opportunity to attract new partners that strengthen our business and allow us to continue to grow the domestic eel aquaculture industry,” American Unagi CEO and Founder Sara Rademaker said.

The company said it expects the Chapter 11 process to “progress swiftly” and will hopefully be completed by the end of the year…