Following the departure of Andrew Carter, Co-founder of Smallhold, on February 18, 2024, Smallhold Inc. filed for bankruptcy Chapter 11 in the United States Bankruptcy Court for the District of Delaware. Based on the numbers and statements, the document shows that Smallhold is facing financial difficulties, with declining income, substantial liabilities, and the need for bankruptcy protection under Chapter 11.
Smallhold is a US-based company growing various specialty mushrooms in vertical farms and has been supplying over 1,100 stores across the United States in the past years.
Smallhold's gross revenue has been increasing steadily over the past few years. However, net income has been decreasing as expenses rose. Monomyth, LLC is listed as an equity holder with 90.77% ownership. The estimated number of creditors is not specified, but the liabilities appear to be significant, as indicated by the negative financial figures.
As seen in the file, the documents are signed by James Dunn, Chairman of Smallhold, Inc., and James C. Barsalona II, the attorney representing the debtor, Smallhold Inc.
Facilities
Smallhold's Brooklyn farm and office space appear to be available for rent, suggesting that both locations are already cleared up and not in use anymore. However, the filing does not explicitly state for which properties Smallhold is filing bankruptcy. Yet, given the Brooklyn, New York, Buda, Texas, and Vernon, California farms are mentioned in the document, they could be included in the bankruptcy proceedings.
In general, it's common for businesses to include all their assets and properties in the bankruptcy filing to address their overall financial situation comprehensively.
For more information:
Smallhold
smallhold@epiqglobal.com