Key Takeaways:
- Smallhold, a Certified B-Corp, successfully exits Chapter 11 reorganization led by an investment from Monomyth Group.
- The company will shift to a partnership model with independent, Certified Organic farms.
- Smallhold aims to expand its national operations while focusing on a profitable, scalable business model.
- The co-founders resigned during the restructuring, leaving the leadership team to manage future growth.
- Smallhold’s products are available in over 700 retail locations, including Whole Foods Market and Sprouts.
Smallhold Inc., a Certified B-Corp and national leader in organic specialty mushrooms, has announced the successful completion of its restructuring process and exit from Chapter 11 (Subchapter V). The company’s emergence from bankruptcy is backed by a key investment from existing shareholder Monomyth Group.
“This marks a new chapter in the growth and future of Smallhold,” said Chip Dunn, Founder and CEO of Monomyth Group. “The team has built the leading specialty mushroom brand in the U.S. We have now put in place the changes needed to execute that vision. We are focused on evolving and scaling our national operations to deliver category-leading products through a profitable business model.”
Leadership Transition and Farm Closures
As part of the broader reorganization, Smallhold’s co-founders resigned from their positions in February 2024. Despite the changes, a strong leadership team remains in place to guide the company forward. During the early stages of restructuring, Smallhold made the strategic decision to close its farms in Texas, New York, and California, prioritizing the preservation of the brand’s value.
Instead, Smallhold has adopted a partnership model, collaborating with independent, Certified Organic farms across the country. This shift enhances the company’s supply chain resilience and improves the efficiency of delivering fresh mushrooms to stores. The new model also aligns with Smallhold’s foundational principle of distributed network farming.
Expanding National Presence
Smallhold’s mushrooms are available in over 700 retail locations nationwide, including Whole Foods Market, Sprouts on the West Coast, and Central Market stores in Texas. The company plans to grow its portfolio of value-added products, rescuing surplus and imperfect mushrooms in its supply chain to reduce waste.
“We could not have navigated this challenging time without the unwavering support of our retailers and customers,” said Aurora Porter, Chief Sales Officer of Smallhold. “Their commitment is a testament to the values-driven relationships we’ve built. We are excited to expand our partner farm network and make strategic investments for future growth.”
Looking Ahead
Through the six-month reorganization, a small but dedicated leadership team managed operations with interim support. The restructuring process is now complete, and Smallhold is set to continue its mission of increasing mushroom consumption across North America by partnering with farmers to connect people with their food, environment, and fungi.
“Smallhold is emerging stronger and more resilient than ever,” said Shawn Bray, Smallhold’s Director of HR and People. “The future looks bright as we continue to grow the mushroom category and support our communities.”
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