Plenty Unlimited, an indoor farming startup operating in Chesterfield, has filed for Chapter 11 bankruptcy protection amid ongoing legal disputes and financial challenges. The company aims to restructure its operations while remaining operational. The bankruptcy filing comes after multiple lawsuits were filed by contractors, including Whiting-Turner, who claim they haven’t been paid for work done on Plenty’s strawberry farm at 13500 N.
Enon Church Road in Meadowville Technology Park. Despite the financial turmoil, Plenty plans to continue operating its existing facilities in Chesterfield and Wyoming after restructuring. Anthony Grossi, an attorney representing Plenty, stated that negotiations over disputes related to the expansion project at the Chesterfield plant are crucial for the company’s future.
Plenty’s interim CEO, Dan Malech, attributed the company’s struggles to challenging market conditions and difficulties in securing capital investment. The company secured $20.7 million in financing to continue operations during the restructuring and plans to focus on strawberry cultivation, the primary purpose of the Chesterfield facility.
Plenty’s bankruptcy and financial woes
Plenty disclosed that it has between $100 million and $500 million in estimated liabilities and a similar amount in assets. Significant liabilities include mechanic’s liens filed on the Chesterfield indoor farm facility. Notable creditors include Whiting-Turner, with nearly $20 million in claims, Mechanicsville-based Electrical Controls & Maintenance with nearly $8 million, and Glen Allen-based Century Construction Co.
with $500,000. Whiting-Turner has been particularly active in seeking compensation, filing two lawsuits against Plenty in the past year related to the local farm. The contractor alleges it has completed $69 million worth of work but has received only $48.9 million, leaving $20.1 million outstanding.
Plenty’s Chesterfield farm, part of what was envisioned as a $300 million campus of multiple farm facilities, currently features a 100,000-square-foot facility with 40,000 square feet of growing space. Strawberries from this facility first hit the market in January. Amid these challenges, the future of Plenty’s operations in Chesterfield hangs in the balance as the company works through its bankruptcy proceedings and legal disputes.
Photo by; Melinda Gimpel on Unsplash
