Jones Food Company, a UK-based innovative vertical farming enterprise, has recently entered administration, marking a significant turning point in its operations.
Established in 2017 and having attracted investment from Ocado just two years later, the company has now ceased production completely. In light of this development, it has appointed RSM UK to oversee the administration process.
As part of its transition, Jones Food Company has expressed intentions to sell its assets. However, it has indicated that it “is unable to comment on whether there are any interested buyers at this stage.” This statement reflects the uncertainty surrounding the company’s future.
According to a statement released by RSM UK, the company’s workforce has been substantially affected, with 61 employees having been made redundant. Nevertheless, a “core team of 11″ remains in place to assist the administrators in maintaining the site and managing potential inquiries from prospective buyers.
In discussing the situation, Damian Webb, a partner at RSM UK, remarked, “The company has built a state-of-the-art vertical farming facility with a highly skilled workforce. There is a great opportunity for a purchaser to build on the investment to date to take the business forward.” His comments highlight the potential value embedded within the company’s existing framework.
Jones Food Company, based in Gloucestershire, has specialized in constructing indoor hydroponic farms designed to cultivate fresh produce within meticulously controlled environments. At its height, the company boasted a capacity to deliver 3,000kg of herbs each week to consumers across the UK.
Notably, the company promoted its fully automated farms, boasting an impressive yield – up to 100 times more per square meter compared to traditional farming methods. This approach not only reduces operational costs significantly but also emphasizes sustainability through the use of renewable electricity and a staggering 90% reduction in water consumption.
Currently, Jones Food Company operates two farms: JCF1 in Scunthorpe, Lincolnshire, which opened its doors in 2018, and a more recent addition in Chepstow, Gloucestershire, launched last year. Together, these farms have served both private-label products and fresh produce under their brands, Homegrown and Leaf. Additionally, the company maintains an innovation center in Bristol, which drives its commitment to advancing agricultural technology.
This news comes on the heels of other significant developments in the vertical farming sector, including the recent restructuring of US-based Plenty Unlimited. Last month, Plenty filed for Chapter 11 bankruptcy protection in a bid to realign its business operations and manage its financial liabilities. The company’s efforts to restructure aim to streamline operations and focus on long-term sustainability, illustrating the challenges faced across the industry.
In a statement dated March 23, Plenty mentioned it has secured a “commitment” for $20.7 million in debtor-in-possession (DIP) financing, which highlights the financial struggles many agricultural businesses are currently experiencing.