Vertical farming company Plenty has filed for bankruptcy, according to a press release issued by the company on Monday. In the announcement, Plenty disclosed that it has secured a commitment for $20.7 million in debtor-in-possession financing, which is part of a proposed restructuring plan. The company intends to continue operating a strawberry farm in Virginia as well as a plant science research and development center in Wyoming.
Debtor-in-possession financing is a type of funding available to companies undergoing Chapter 11 bankruptcy. Since its founding in 2014, the South San Francisco-based Plenty has garnered nearly $1 billion in funding from a diverse group of investors, including SoftBank Investment Advisers, Walmart, Bezos Expeditions, and angel investor Jeff Bezos. The company’s last known valuation stood at $1.9 billion during a $400 million Series E fundraising round in January 2022, as reported by PitchBook.
The vertical farming industry has been facing significant challenges, with several companies filing for bankruptcy in recent years. In November 2024, agtech unicorn Bowery Farming was reported to be shutting down after raising over $700 million in funding and being valued at $2 billion in 2021. Additionally, AeroFarms and AppHarvest both filed for bankruptcy protection in 2023. AeroFarms, which had raised more than $300 million from investors, successfully emerged from bankruptcy protection fully funded as of September 2023.
AppHarvest had raised over $700 million before going public in 2021 with a valuation of $1 billion, later filing for Chapter 11 protection in 2023.
