Plenty Bankruptcy: Vertical Farming Company Files for Chapter 11

Plenty Files for Bankruptcy Amidst Industry Challenges

Plenty, a vertical farming company, has announced its filing for bankruptcy protection, as detailed in a press release issued on Monday.

The company indicated that it has secured a commitment for $20.7 million in debtor-in-possession financing. This funding is integral to a proposed restructuring strategy.

Operational Continuity During Restructuring

Despite the bankruptcy filing, Plenty intends to maintain operations at its strawberry farm located in Virginia.

Furthermore, the company will continue its plant science research and development (R&D) activities at its facility in Wyoming.

Understanding Debtor-in-Possession Financing

Debtor-in-possession financing represents a financial lifeline for companies undergoing Chapter 11 bankruptcy proceedings.

Significant Investment History

Founded in 2014 and headquartered in South San Francisco, Plenty has attracted substantial investment over the years.

To date, the company has raised approximately $1 billion from diverse investors, including SoftBank Investment Advisers, Walmart, Bezos Expeditions, and Jeff Bezos himself as an individual investor.

Peak Valuation and Recent Downturn

According to PitchBook data, Plenty’s most recent valuation reached $1.9 billion following a $400 million Series E funding round in January 2022.

Wider Industry Trends

The vertical farming sector has experienced a wave of bankruptcies in recent times, signaling significant challenges.

In November 2024, Bowery Farming, another agtech unicorn, was reported to be ceasing operations after securing over $700 million in funding and achieving a peak valuation of $2 billion in 2021.

Recent Bankruptcy Filings by Competitors

Prior to this, both AeroFarms and AppHarvest filed for bankruptcy protection in 2023.

AeroFarms had previously raised over $300 million from investors before initiating bankruptcy proceedings. It successfully emerged from bankruptcy in September 2023 with full funding.

AppHarvest, which went public in 2021 with a $1 billion valuation after raising more than $700 million, also sought Chapter 11 protection in 2023.