Peoria's NFW is furloughing a "significant" number of employees while the company seeks additional funding.
A spokesperson for the company formerly known as Natural Fiber Welding says there are delays in customer contracting. That's left NFW unable to close a bridge round of funding that's been in the works for several months.
The spokesperson didn't rely to an inquiry about how many employees will be furloughed or how many people currently work there. The company laid off approximately 10% of its workforce in April 2023.
The company has sought to raise at least $173 million since 2020 through several rounds of equity buy-ins and debt issuance, according to records with the U.S. Securities and Exchange Commission. That includes a $30 million equity offering this past spring, which still had $4.6 million remaining to be sold as of the last report to the SEC in April.
NFW was founded in Peoria in 2015. It produces plant-based plastics and textiles. The company has built partnerships with Ralph Lauren, BMW, and other major corporations. The company's main campus is at 6533 N. Galena Rd.
The spokesperson also says NFW founder and Bradley University professor Dr. Luke Haverhals has resigned from the CEO role for "personal reasons," but remains on the company's board of directors.
Steve Zika is the company's new CEO. He was the company's president.
“NFW’s employees have been on an incredible mission in the heart of Peoria, working together to create non-toxic, plant-based materials to take on the plastics industry," Zika said in a prepared statement. "We are encouraged by the number of people globally, and especially here in the local Peoria community, who are committed to our long-term success. Our team will do everything we can to secure additional funding, and we will keep our employees informed.”
