Did Your Broker Sell You Private Equity Investment in Bowery Farming?

In a recent article in Agricultural Dive, they reported that Bowery Farming, Inc. is laying off 187 workers and reportedly closing operations. The indoor farming sector is struggling with financial setbacks and rising costs.

The New York City-based company, according to Agricultural Dive, was once valued at $2.3 billion and backed by celebrities like Natalie Portman and Justin Timberlake, notified their workers of layoffs at two locations last week. According to WARN filings, 104 workers lost their jobs in Bethlehem, Pennsylvania, and 83 workers lost their jobs when a facility closed in Nottingham, Maryland. According to Pitchbook, Bowery Farming is ceasing all operations immediately, citing an internal document.

Agricultural Dive claims that Bowery Farming’s layoffs come after several indoor vertical farms closed their operations last year due to cost challenges and a lack of investor funding in part due to wavering consumer demand for premium produce.

Bowery Farming, founded in 2015, is one of the largest vertical farming companies in the US. Bowery uses controlled environment techniques to grow pesticide-free leafy greens and herbs. In an article from PR Newswire in 2021, they reported that Bowery was in over 850 grocery stores and had experienced more than 750% growth at brick-and-mortar retailers like Albertsons Companies (Safeway and Acme), Giant Food, Walmart and Whole Foods Market, and more than quadrupled e-commerce sales through e-commerce platforms, including Amazon Fresh.

According to the Agricultural Dive article, despite raising more than $700 million in venture capital from leading firms and celebrities, Bowery Farming reportedly told employees that it was struggling to secure financing in recent months and was looking to sell the company. However, according to Pitchbook, Bowery was unsuccessful in reaching a deal. Their closure comes after the company worked to expand beyond the Northeast with the construction of two farms serving the Atlanta and Dallas-Fort Worth metro areas. In early 2022, Bowery took on $150 million debt from KKR to fund its expansion plans. Several indoor farming companies filed for Chapter 11 bankruptcy protection last year.

If your broker recommended the private equity investment, Bowery Farming, Inc., and you've experienced financial losses, contact Soreide Law Group and speak to an experienced securities lawyer at no cost at:  888-760-6552.

Soreide Law Group represents our clients nationwide before FINRA on a contingency fee basus.