AeroFarms, Inc., based in Danville, VA, announced on Sept. 18 the successful completion of its restructuring process and the exit of its business from Chapter 11. The company describes itself as a market leader for indoor vertical farming and microgreens. 

According to the press release, AeroFarms’ emergence from Chapter 11 includes the approval from the bankruptcy court for its Asset Purchase Agreement (“APA”) with a group of existing investors, led by Grosvenor Food & AgTech (GFA), including an expanded relationship with Doha Venture Capital.

Court filings and other documents related to the reorganization proceedings are available on a website administered by the Company’s claims agent, Omni, at www.omniagentsolutions.com/aerofarms or www.deb.uscourts.gov, the official Bankruptcy Court website.  The case number is 23-10737. The Company will continue to provide regular updates as specific elements of its strategic plan and Chapter 11 filing meet targeted milestones.

According to Winsight Grocery Business on Sept. 19, “AeroFarms filed for Chapter 11 on June 8, and its then-CEO David Rosenberg, one of the company’s co-founders, stepped down from his role. Chief Financial Officer Guy Blanchard has served as president of the company since Rosenberg's departure from the role.”  

The AeroFarms release indicates: “This restructuring substantially strengthens AeroFarms’ balance sheet, injecting the necessary funds to reach profitability at the flagship operation in Danville, Virginia. The Company has eliminated spending on all projects that do not contribute to the ramp-up of the Danville Farm, thereby accelerating its path to profitability. Since the Danville Farm began shipping product to customers in September 2022, revenues have continuously climbed to meet growing demand. More recently, the completion of several automation projects has further increased the throughput and efficiency of the farm. The Company targets completing the ramp-up of its Danville operation by the end of 2023 and reaching profitability at the farm soon thereafter.”

AeroFarms adds that “consumer demand and sell-through for AeroFarms microgreens products are extremely strong. At the Danville Farm, the Company grows and distributes high-quality microgreens on a consistent, year-round basis with robust flavor and higher nutrient density than its more mature green counterparts. Currently, AeroFarms microgreens can be found in over 2,000 retail locations throughout the United States, including nationwide at Whole Foods Market stores and in regional locations of Ahold Delhaize, Harris Teeter, H-E-B, and others.”

 “This marks a new chapter in the maturity and growth of AeroFarms,” stated Stephan Dolezalek, managing partner, Grosvenor Food & AgTech (GFA). “AeroFarms’ founders established the world’s most advanced vertical farming technology. We have now put in place the changes needed to deliver on their vision. As an investor dedicated to creating a more sustainable global food supply chain, we see vertical farms as a critical part of the solution and are now focused on efficiently scaling our operations to deliver a market-leading product through a profitable business model.”

To lead AeroFarms through its next stage of growth, AeroFarms adds, Molly Montgomery, a veteran of the food and agricultural industry and a Venture Partner with Grosvenor Food & AgTech, has been appointed Acting CEO and Executive Chairperson of the AeroFarms Board of Directors. Montgomery currently serves as a board director for companies across the agricultural supply chain, including Wilbur-Ellis, The Wine Group, Custom Made Meals (CMM), and Benson Hill. Montgomery brings invaluable operational experience from successfully scaling profitable businesses within the fresh food sector. 

“As we face the mounting challenges of climate change and food insecurity, we need to rethink our global food supply chain,” says Molly Montgomery. “AeroFarms is a testament to the innovative thinking required to deliver highly nutritious food in a more sustainable and cost-efficient manner. The Danville Farm is an impressive operation, leveraging proprietary technology to deliver a fresh product that is less vulnerable to climate-related threats. I am looking forward to working with Guy Blanchard, the newly named AeroFarms President, and the rest of the AeroFarms team to complete the ramp-up of the Danville facility and to deliver a profitable operation that will enable future growth.”

According to Nielsen syndicated data, AeroFarms is the fastest growing packaged salad greens brand by revenue at retail in the United States. 

AeroFarms microgreens are safely grown indoors in its Danville Farm, a state-of-the-art facility certified for USDA Good Agricultural Practices, SQF Level 2 Good Manufacturing Practices, Non-GMO Project Verification, OU Kosher, and the industry-leading CEA Food Safety Seal that was developed to differentiate indoor clean growing practices from traditional challenges in the field.