A Colorado startup that grew food in shipping containers filed for Chapter 7 bankruptcy, even after reporting its best sales year. Here is what that means for buyers.
A Colorado startup that was featured on national TV as a picture of farming's future has filed for Chapter 7 bankruptcy. The company grew food in converted shipping containers. The filing came about four years after its TV moment, and it came even though the company reported its strongest revenue year yet.
The startup turned shipping containers into hydroponic farms. Hydroponic means plants grow in water with added nutrients instead of in soil. Putting the farms inside containers is meant to let food be grown in a small, controlled space.
Chapter 7 is a type of bankruptcy that usually means a company shuts down and sells its assets. It is different from filings meant to keep a business running while it reworks its debts. So this filing points toward an ending, not a restart.
The material available does not explain why the company filed despite record sales. It does not say how much money the company owed or what will happen to its farms and equipment. It also does not say what customers should expect next.
Strong sales do not always mean a company is financially healthy. For any business that depends on a young supplier, a few checks can help:
Record sales did not save this startup, so check a young supplier's finances and keep a backup before you depend on it.
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