Plenty Unlimited, once heralded as a revolution in vertical farming, has filed for Chapter 11 bankruptcy protection in a Texas court. The move comes after the company failed to secure fresh funding, leaving it saddled with an estimated $100 million to $500 million in both assets and liabilities.
The high-tech farming venture, backed by heavyweight investors, had long promised to transform agriculture by growing crops indoors, free from the whims of weather and climate change. But as funding dried up, the company found itself entangled in a financial storm it could not escape.
A Race Against the Clock
In a statement Sunday, Plenty announced it has secured $20.7 million in debtor-in-possession financing to keep operations afloat during its restructuring. The company intends to use the bankruptcy process to “streamline operations” and chart a path forward, whether through an equity rights offering or a potential sale of the business.
Daniel Malech, Plenty’s interim CEO, laid bare the harsh realities of the company’s financial struggles, revealing that Plenty has operated with negative cash flow since its inception. The last time it successfully raised equity financing was in 2022—an eternity in the fast-moving world of startups.
