AppHarvest, an indoor vertical farming company, revealed that it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, reports Progressive Grocer.
AppHarvest joins Kalera and AeroFarms, two vertical farming companies that have filed for bankruptcy this year.
AppHarvest is working to restructure its operations and maximize its value. The industry is in jeopardy as funds dry up, profits have yet to live up to expectations, and creditors look for their return on investment, according to the report.
The vertical farming company plans to transition one of its farm operations in Kentucky to Mastronardi Produce, one of its affiliates. The deal will give the company roughly $3.75 million to support its restructuring plan.
“The AppHarvest board of directors and executive leadership evaluated several strategic alternatives to maximize value for all stakeholders prior to the Chapter 11 filing,” said AppHarvest CEO Tony Martin. “The Chapter 11 filing provides protection while we work to transition operation of our strategic plan, Project New Leaf has shown strong progress toward operational efficiencies resulting in higher sales, cost savings, and product quality.” Full Story
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Image: AppHarvest