“Plenty Unlimited’s Vertical Farming Dreams Crumble: Bankruptcy of a $1 Billion Agri-Tech Star”

Startup Name: Plenty Unlimited (USA)

—a high-profile vertical farming startup backed by Jeff Bezos, Eric Schmidt, and SoftBank—filed for Chapter 11 bankruptcy on March 23, 2025, after running out of capital, halting operations at its Compton site, and laying off staff. The company cited challenging market dynamics and fundraising difficulties as key reasons for the filing, which followed years of ambitious expansion and nearly $1 billion in venture funding.

Key Points:

• Bankruptcy Filing: Plenty filed voluntary petitions under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas, aiming to restructure liabilities, streamline operations, and focus its future business.

• Operational Changes:

  • Operations at the Compton, California facility were halted.

  • The company continued to operate its Richmond, Virginia vertical strawberry farm and its Laramie, Wyoming plant science R&D facility throughout the restructuring.

• Financing: Plenty secured $20.7 million in debtor-in-possession (DIP) financing to maintain operations during the bankruptcy process.

• Restructuring Outcome:

  • By May 29, 2025, Plenty successfully emerged from Chapter 11 after the court confirmed its reorganization plan.

  • The company is now laser-focused on premium strawberry production at its Richmond, Virginia farm, resuming construction and expanding growing capacity.

  • The restructuring resolved outstanding creditor claims and provided new capital to support ongoing operations.

• Strategic Shift: The company’s new strategy centers on scaling vertical strawberry farming and pursuing farm sales leveraging its proprietary technology, rather than broad-based leafy greens or multi-crop vertical farming.

Summary Table

Plenty’s case highlights both the promise and the financial volatility of vertical farming, as even the most well-funded pioneers face major challenges in scaling and sustaining capital-intensive agtech ventures in a tough funding environment.