AeroFarms filed for Chapter 11 bankruptcy protection in Delaware on Thursday as the vertical farming giant seeks legal protection to restructure its finances and operations. The company was founded in 2004 and is headquartered in Newark.
In a statement, the company cited “significant industry and capital market headwinds,” but noted its “critical” Danville, Virginia-area farm “continues to scale” according to plan.
Following “careful consideration” by its board, the company has also filed several “first-day” motions with the bankruptcy court, requesting customary relief in order to transition into Chapter 11, ensuring minimal disruption to the company’s core business operations.
Additionally, AeroFarms also announced a change in its leadership structure, with David Rosenberg, the business’s co-founder and CEO, deciding to step down from his position and assume a special advisory role for the board. AeroFarms’ chief financial officer, Guy Blanchard, will take on additional responsibilities as the company’s president.
AeroFarms said it will operate as usual throughout the Chapter 11 filing, servicing its growing customer base and key selling partners, including additional retailer expansions planned for the remainder of 2023.
Blanchard commented: “We are fortunate to have existing investors who continue to believe in AeroFarms and are confident that we can hit our targeted profitable operations for our Danville farm. There is incredible consumer and customer interest for our market-leading microgreens, and we are excited to continue (to) be able to build our business to meet that demand.”