Plenty Unlimited Inc, an agricultural technology company startup backed by high-profile investors like Jeff Bezos and Eric Schmidt, has filed for Chapter 11 bankruptcy. A leader in large-scale vertical indoor farming, the company has faced mounting financial struggles in recent years, ultimately leading to its decision to file for bankruptcy and restructure its operations. Read on to discover the key factors behind Plenty’s bankruptcy filing and what’s next for the company’s vision of sustainable, high-tech agriculture.
What Led Plenty Unlimited to Bankruptcy?
On March 23rd, Plenty Unlimited filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas. The filing aligns with a board-approved plan aimed at restructuring its liabilities, streamlining operations, and refocusing its business strategy.
“Plenty’s advanced technology is transforming indoor farming, removing the unpredictability of Mother Nature and making it possible to create a stable supply of fresh produce with peak-season flavor year-round almost anywhere in the world,” said Interim CEO Dan Malech in a statement. “However, our company is not immune from larger market dynamics and the fundraising challenges facing our industry. After evaluating all of our strategic alternatives, we have determined that pursuing this restructuring process is in the best interests of all of the company’s stakeholders.”
A decline in venture capital funding for agricultural technology startups in recent years has made it increasingly difficult for Plenty to secure additional investment since 2022. Without sufficient financial backing, the company struggled to pay vendors and contractors, resulting in mounting debts.
These financial pressures ultimately forced the company to downsize its workforce, halt construction at its Virginia facility, and shut down operations at its Compton, California location. According to Plenty itself, it had between $100 million and $500 million in both assets and liabilities.
Who Are Plenty Unlimited’s Investors?
Before filing for bankruptcy, Plenty Unlimited attracted investments from several high-profile individuals and organizations, including:
- Jeff Bezos: The Amazon founder backed the company through his venture fund, Bezos Expeditions.
- Eric Schmidt: The former Google CEO invested via Innovation Endeavors.
- SoftBank Vision Fund: Led multiple funding rounds, including a $200 million Series B in 2017 and a $140 million Series D in 2020.
- Driscoll’s: The world’s leading fresh berry company participated in the Series D round and established a strategic partnership with Plenty.
- Walmart: Joined as a strategic partner in the $400 million Series E funding round in 2022.
These investments helped fuel Plenty’s efforts to revolutionize indoor farming before financial challenges led to its bankruptcy filing.
What’s Next for Plenty Unlimited?
Despite its bankruptcy filing, Plenty Unlimited will continue operating its Richmond, Virginia, vertical strawberry farm and its Laramie, Wyoming, plant science R&D facility throughout the restructuring process.
The company has secured a $20.7 million debtor-in-possession (DIP) financing commitment and has filed a motion for court approval. If granted, the financing will provide the necessary liquidity to sustain operations during the restructuring period.
Plenty remains focused on its goal of delivering fresh strawberries year-round, ensuring that its farming technology continues to serve consumers while the company works toward financial stability.