Company behind Chesterfield indoor farm files for bankruptcy

Plenty Unlimited, a San Francisco-based agricultural technology company that counts tech billionaires Jeff Bezos and Eric Schmidt among its investors, has filed for bankruptcy but plans to continue operating its vertical strawberry farm in Chesterfield County throughout the restructuring, according to a company announcement.

“This is a challenging time for the vertical farming industry and Plenty is not immune from those challenges or market dynamics,” Plenty said in a statement to Virginia Business. “After evaluating all of our strategic alternatives, we have determined that pursuing a restructuring process is in the best interests of Plenty and all of our stakeholders. Through this process, Plenty will be better positioned to continue working toward our mission to make fresh food accessible to everyone, starting with the year-round production of premium strawberries in our innovative vertical farm in Virginia.”

In addition to its facility in Chesterfield’s Meadowville Technology Park, Plenty will continue operating its plant science research and development facility in Wyoming throughout the restructuring process.

A list of Plenty’s creditors holding the 30 largest unsecured claims, or debts not backed by collateral, included three Richmond businesses: Electrical Controls & Maintenance, which is owed more than $7.7 million;  Colonial Webb Contractors, which is owed more than $3 million; and Liphart Steel, which is owed more than $2.2 million, according to documents filed with the U.S. Bankruptcy Court for the Southern District of Texas. Additionally, Montpelier’s C.T. Purcell Excavating is owed more than $877,000; Glen Allen’s Century Construction is owed less than $500,000; and Virginia Beach’s Century Concrete is owed more than $300,000.

In the filings, Plenty claims to have assets worth between $100 million and $500 million and a similar amount in estimated liabilities.

Plenty has received a commitment of $20.7 million for debtor-in-possession financing, a type of funding for companies in Chapter 11 bankruptcy. The company hopes the funding will provide it with the necessary liquidity to support its operations, according to the announcement released Sunday.

U.S. Bankruptcy Judge Christopher Lopez issued an interim order allowing Plenty to obtain DIP financing Tuesday and scheduled a hearing for April 15.

Plenty’s Chesterfield operation opened the first farm on its 120-acre campus in September. It’s designed to produce more than 4 million pounds of strawberries annually in less than 40,000 square feet by growing the fruit vertically on 30-foot towers. The Virginia farm exclusively grows strawberries for California-based Driscoll’s, the world’s largest berry distributor. The Chesterfield indoor farm has had berries in market since January, according to a Plenty spokesperson.

The farm uses artificial intelligence and other technology to grow produce in indoor spaces that aren’t subject to variables in temperature and weather conditions.

When Gov. Glenn Youngkin announced the project in 2022, Plenty planned to invest $300 million to create the vertical farm campus in Chesterfield, creating 300 jobs. Currently, Plenty has 66 employees, according to bankruptcy filings. Twelve full-time employees are paid hourly, while the rest are either full-time or part-time salaried employees.

Lopez on Monday issued an order allowing Plenty to pay wages, salaries and employee benefits owed prior to the Chapter 11  bankruptcy filing and to “continue the post-petition maintenance of employee benefit programs, policies and procedures.”

In December, Plenty announced plans to close its Compton, California, leafy greens farm, citing challenges stemming from the high cost of doing business in California, including expensive energy prices. That farm opened in 2023. In a post on LinkedIn, the company stated it planned to shift its focus to growing strawberries.

Dan Malech, Plenty’s interim CEO, took over from Arama Kukutai, who left the company in late 2024, according to reporting by Bloomberg.

Malech, who joined Plenty in 2018 as head of legal, was named Plenty’s senior vice president of strategy and general counsel in 2021. Previously, Malech worked with biotech company Zymergen.

AeroFarms, an indoor agriculture company based in Danville, filed for Chapter 11 bankruptcy protection in June 2023 but emerged from bankruptcy with a new CEO by September 2023.

In February, AeroFarms announced it commands 70% of the U.S. retail market share for microgreens.