Brooklyn, N.Y.-based mushroom grower Smallhold has filed for voluntary protection under Chapter 11 bankruptcy, company marketing director Abigail Knoff confirmed to The Packer.
“This reorganization is driven by broader industry trends and a challenging fundraising environment for many venture capital-backed businesses,” Knoff said. “While there is a huge and growing demand for fresh specialty mushrooms and mushroom-based products, Smallhold’s operations require a significant restructuring.”
Knoff said the company plans a leaner and focused business model under this filing.
The development comes on the heels of Smallhold co-founder Andrew Carter announcing his departure on LinkedIn.
“It’s been a journey, building a national mushroom brand with farms throughout the US, inventing new growing technology, and feeding millions of people with healthy, organic, specialty mushrooms,” he wrote in the post.
Carter said Smallhold started with a do-it-yourself spawn lab in his basement in 2015 and grew to a company with more than 100 employees growing more than 2 million pounds a year.
