Aerofarms Emerges “Fully-Funded” From Chapter 11 Filing
This greenhouse made it out of the red.
After filing for Chapter 11 bankruptcy in June, Aerofarms announced today it has restructured the organization to be “fully-funded” following the court’s approval of its asset purchase agreement with existing investors Grosvenor Food & AgTech (GFA) and Doha Venture Capital.
Following the court’s approval, the controlled-environment agricultural (CEA) operation claims it will have the necessary funds for its flagship Danville, Virginia farm to reach profitability; spending on all other projects that do not contribute to the Danville farm has been eliminated, according to a press release.
“This marks a new chapter in the maturity and growth of AeroFarms,” said Stephan Dolezalek, managing partner at GFA, in the release. “AeroFarms’ founders established the world’s most advanced vertical farming technology. We have now put in place changes needed to deliver on their vision.”
Molly Montgomery, Aerofarms’ new acting CEO and executive chairperson, is a key part of those changes. A venture partner at GFA, Montgomery has extensive experience scaling fresh food businesses including serving as CEO of Landec Corporation where she helped launch its branded CPG arm, Curation Food, to unify the structure. She also serves as a board director for numerous agricultural supply chain companies, including Wilbur-Ellis, The Wine Group, Custom Made Meals (CMM) and Benson Hill.
“As we face the mounting challenges of climate change and food insecurity, we need to rethink our global food supply chain,” said Montgomery in a press release. “AeroFarms is a testament to the innovative thinking required to deliver highly nutritious food in a more sustainable and cost-efficient manner.”
Aerofarms greens are currently sold in over 2,000 stores across the U.S including Whole Foods, Ahold Delhaize, Harris Teeter and H-E-B, among others. But scaling within the CEA space has been a challenge for companies that do not have a direct line of support from distribution and retail partners. Due to the highly perishable products, close proximity to and consistent support from retail partners is essential.
In the past year, San Francisco-based Plenty announced Walmart had contributed to its $400 million fundraise and said the retailer would begin carrying the green in all of its California locations. Similarly, indoor farmer Square Roots announced a plan to begin co-locating new growing facilities with select UNFI distribution centers.
