SAN FRANCISCO — Plenty Unlimited Inc., a vertical farming startup, has filed for Chapter 11 bankruptcy protection and secured $20.7 million in debtor-in-possession (DIP) financing to support continued operations during its restructuring, the company announced Sunday.
The filing, made in the U.S. Bankruptcy Court for the Southern District of Texas, is part of a strategic shift to narrow the company’s focus on the premium strawberry market while reorganizing its liabilities and streamlining operations.
Plenty will maintain activity at its Richmond, Virginia, indoor strawberry farm and its Laramie, Wyoming, R&D facility throughout the restructuring process. The $20.7 million DIP financing, pending court approval, is expected to provide liquidity to sustain the business during the Chapter 11 proceedings.
“Plenty’s advanced technology is transforming indoor farming,” said Interim CEO Dan Malech in a statement. “But we’re not immune from broader market challenges. This restructuring gives us a path to grow our core strawberry business and better meet consumer demand.”
The company has also filed customary motions to continue paying employee wages and benefits during the process. Legal counsel is being provided by Sidley Austin LLP and Wilson Sonsini Goodrich & Rosati, with Jefferies LLC and Uzzi & Lall LLC advising on financial matters. Davis Polk & Wardwell LLP and Sullivan and Cromwell LLP represent certain DIP lenders.
Plenty, known for its high-efficiency indoor farming systems, aims to capitalize on what it calls a supply gap in locally grown, high-quality strawberries available year-round.
More information about the proceedings is available at https://cases.stretto.com/PlentyUnlimited.
