Vertical farming company Infarm has been “declared bankrupt” in the Netherlands, according to official documents.
The news comes after the company closed operations across its key markets in the UK, France, Germany, the Netherlands and Denmark over the last year, completely exiting the European market. At the end of last year, Infarm laid off more than half its staff to downsize operations.
Infarm grows salad leaves, herbs and other vegetables in vertical farms and sells them to supermarkets, restaurants and wholesalers. It is reported that the company has raised more than $470 million in total from investors, including Astanor Ventures, Qatar Investment Authority and Balderton.
This is the latest in a string of bankruptcies for indoor crop farming facilities. In June, AeroFarms filed for Chapter 11 bankruptcy in Delaware, US, while Kalera and AppHarvest – both US companies – also filed. AeroFarms has since emerged from bankruptcy and says it is nearing profitability.
Like many vertical farms, Infarm has been hit by rising energy prices, which have impacted the company’s margins. Indoor farms are often powered by LED lighting, temperature control systems and airflow systems, all of which are energy-intensive.
Multiple industry sources say Infarm has raised $40 million – $50 million in new funds from Qatar.
FoodBev has approached Infarm for comment.
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