Key Takeaways
- Plenty Unlimited Inc. has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas.
- The company plans to continue operating its Richmond, Virginia farm and Laramie, Wyoming R&D facility.
- Plenty has secured $20.7 million in debtor-in-possession (DIP) financing to support operations during restructuring.
- Legal claims from contractors and subcontractors remain unresolved.
- The company aims to streamline operations and reassess its strategic direction.
Plenty Initiates Bankruptcy Proceedings
On March 2025, Plenty Unlimited Inc., a vertical farming company, announced it had filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The decision follows approval by the company’s Board of Directors as part of a plan to restructure liabilities, reduce operational costs, and focus on core business segments.
According to the company, the restructuring process is intended to preserve ongoing operations and provide financial stability.
“We have determined that pursuing this restructuring process is in the best interests of all of the company’s stakeholders,” said Dan Malech, Interim CEO of Plenty.
Ongoing Operations at Richmond and Laramie Facilities
Despite the Chapter 11 filing, Plenty confirmed that it will maintain operations at two key facilities:
- The vertical strawberry farm in Richmond, Virginia
- The plant science research and development facility in Laramie, Wyoming
Plenty’s Laramie R&D center, scheduled to open in 2026, was supported by a $22.5 million economic development grant. It is expected to focus on crop innovation, plant genetics, and controlled growing environments.
The company has secured a commitment for $20.7 million in DIP financing. This funding, pending court approval, is intended to provide liquidity for operational needs during the restructuring process.
The Company’s History
Plenty Unlimited Inc., a U.S.-based vertical farming company, has raised approximately $940 million through multiple funding rounds since its founding in 2014. Its early Seed and Series A rounds (2014–2016) secured around $26 million from investors including Innovation Endeavors, Data Collective DCVC, Finistere Ventures, and Bezos Expeditions. In 2017, the company closed a $200 million Series B round led by SoftBank Vision Fund 1, with continued support from earlier backers. This was followed by a $175 million Series C round in 2019 and a $140 million Series D round in 2020, both also led by SoftBank Vision Fund 1, with Driscoll’s joining as a new investor in the latter. In January 2022, Plenty announced a $400 million Series E round led by One Madison Group and JS Capital, with participation from Walmart and SoftBank Vision Fund 1.
Plenty’s Legal Claims and Contractor Disputes
The financial restructuring follows several claims from contractors and subcontractors. Reports indicate that multiple small business contractors working on Plenty’s Richmond-area facilities remain unpaid. Some allege they were offered partial compensation under restructuring terms prior to the bankruptcy filing.
Century Construction Co. filed a lawsuit seeking nearly $500,000 in unpaid invoices and requested a court-ordered sale of Plenty’s property. The lawsuit also names general contractor Whiting-Turner in connection with the dispute.
The company acknowledged these challenges in a statement and said it continues to work toward resolving outstanding obligations.
Plenty’s Decline in Valuation and Financing Discussions
Plenty has experienced a significant drop in valuation, from a peak of $1.9 billion to less than $15 million, according to Bloomberg. The company had reportedly been in discussions for a $125 million funding round led by One Madison Group, with interest from other stakeholders. The status of this funding remains uncertain in light of the bankruptcy filing.
The company also noted that changes in leadership and market conditions contributed to its decision to restructure.
Industry Context and Future Outlook
Plenty’s situation reflects broader trends within the vertical farming sector, where companies have faced increasing operational costs, supply chain challenges, and limited access to new capital. Other firms in the space, such as AeroFarms, Kalera, and AppHarvest, have undergone similar financial challenges.
Plenty stated that it plans to continue focusing on strawberry production and research as part of its long-term strategy.
The company has filed motions to continue paying employee wages and benefits, maintain relationships with suppliers, and support essential business functions during the court-supervised process.
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