Plenty Unlimited Inc. says it has filed voluntary Chapter 11 bankruptcy petitions in the U.S. Bankruptcy Court for the Southern District of Texas, in accordance with its board-approved plan to restructure its liabilities, streamline operations and focus its go-forward operations.
The company posted on social media in December 2024 that it closed its Compton, Calif., leafy greens farm as part of a strategic decision to focus on strawberries. Plenty will continue to operate its Richmond, Va., vertical strawberry farm and its Laramie, Wyo., plant science research and development facility throughout the restructuring process, according to a news release.
The company said it has also received a commitment for debtor-in-possession financing of $20.7 million. Plenty has filed a motion seeking approval of the DIP financing and, upon approval, the DIP financing is expected to provide the company with the necessary liquidity to support its operations throughout the planned process, the release said.
“Plenty’s advanced technology is transforming indoor farming, removing the unpredictability of Mother Nature and making it possible to create a stable supply of fresh produce with peak-season flavor year-round almost anywhere in the world,” said Dan Malech, interim CEO for Plenty. “However, our company is not immune from larger market dynamics and the fundraising challenges facing our industry. After evaluating all of our strategic alternatives, we have determined that pursuing this restructuring process is in the best interests of all of the company’s stakeholders.
“We are fortunate to have stakeholders who support and believe in our mission to make fresh food accessible to everyone, everywhere,” Malech continued. “The restructuring will position us to continue working toward that mission by expanding our production of premium strawberries with industry-leading partners and filling a supply gap in the market to meet consumer demand for locally grown, high-quality strawberries year-round.”
In addition to seeking approval of the DIP financing, Plenty has filed a number of customary motions seeking authorization to support its operations during the court-supervised process, including authority to pay wages and provide health and other employee benefits, the release said.
Additional information regarding the process can be found at cases.stretto.com/PlentyUnlimited, a website administered by Plenty’s claims agent, Stretto Inc. Information is also available by calling 855-994-4202 (toll-free) and 847-610-7823 (international).
Sidley Austin LLP and Wilson Sonsini Goodrich & Rosati are serving as the company’s legal counsel, the release said. Jefferies LLC and Uzzi & Lall LLC are serving as financial advisers. Davis Polk & Wardwell LLP and Sullivan and Cromwell LLP are representing certain providers of the DIP financing.
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