AeroFarms Winds Down Operations, Lays Off Staff and Seeks Buyer for Assets

Key Takeaways

• AeroFarms has laid off a significant number of employees over the past week as operations wind down.
• The company is actively seeking a buyer to acquire all of its assets, according to multiple sources familiar with the situation.
• A WARN notice filed in Virginia confirms 173 job losses tied to the closure of the Ringgold, Virginia facility.
• Recent refinancing and equity transactions were not sufficient to secure continued operations following an investor withdrawal.
• The development adds to a growing list of restructurings and bankruptcies across the controlled-environment agriculture (CEA) sector.

Layoffs Confirmed Through Employee Statements and State Filings by AeroFarms

AeroFarms, one of the most prominent U.S. indoor vertical farming companies, has laid off a large portion of its workforce in recent days as it moves to wind down operations and pursue a sale of its assets.

Multiple former employees have publicly confirmed their departures on LinkedIn over the past week. In one widely shared post, a former senior engineer wrote, “As the company winds down, it’s impossible not to feel the weight of it, but also the gratitude,” adding that AeroFarms had built “real, operational machinery” and achieved a “standalone, profitable farm.”

Another post had with a blunt epitaph: “R.I.P: AeroFarms 2004 to December 2025.”

Virginia WARN Notice Details Scope of Job Losses

The layoffs were formally disclosed in a letter dated December 11 to the Virginia Department of Workforce Development and Advancement, reported by Virginia Business. In the filing, Carlos Nunez, Vice President of Human Resources at AeroFarms, stated that New AeroFarms and AeroFarms Danville Farming Co. plan to end operations at the Ringgold facility, resulting in 173 employees losing their jobs, including 127 Virginia residents.

According to the letter, the company’s largest investor withdrew further financial support “due in whole or in part to the investor’s unannounced restructuring and change in priorities.” AeroFarms attempted to secure an extension or alternative funding but was unsuccessful.

AeroFarms Asset Sale Process Underway

Sources familiar with the situation indicate that AeroFarms is now actively pursuing a buyer to acquire all of its assets, including its technology, infrastructure, and intellectual property. The company has not publicly commented on the sale process or provided a timeline.

This development follows earlier announcements highlighting debt refinancing and equity injections intended to stabilize operations at the Danville facility. In a previous statement, Executive Chair and CEO Molly Montgomery said, “We have recently demonstrated that vertical farming can indeed be sustainable, profitable, and produce fresh greens at scale.”

Part of a Broader CEA Industry Contraction

AeroFarms’ latest developments add to a growing list of restructurings, shutdowns, and bankruptcies across the controlled-environment agriculture and indoor farming sector over the past two years, as capital availability tightens and investors reassess risk in asset-heavy production models.

iGrow News will be publishing a separate article later today examining recent bankruptcies and restructurings across the indoor farming and broader AgTech industry, drawing on data tracked throughout 2024 and 2025. The analysis will place AeroFarms’ situation within the wider market context.

For ongoing tracking of bankruptcies, restructurings, and M&A activity across indoor farming and AgTech, readers can access it at iGrow Network.