Jones Food Company, a UK-based vertical farmer, has recently entered administration, marking the end of its production operations. The company, founded in 2017 and backed by Ocado in 2019, has appointed RSM UK as its administrator as it looks to sell its assets. While the company has not disclosed any potential buyers at this stage, it is actively seeking interested parties.
As part of the administration process, Jones Food Company has made 61 employees redundant, with only a core team of 11 individuals remaining to support the administrators in managing the site and liaising with potential buyers. Damian Webb, a partner at RSM UK, emphasized the company’s advanced vertical farming facility and skilled workforce, highlighting the opportunity for a purchaser to build on the existing investment and drive the business forward.
Specializing in indoor, hydroponic farming to produce fresh produce in a controlled environment, Jones Food Company’s operations were highly efficient, delivering 3,000kg of herbs weekly to UK customers at one point. The company’s fully automated farms boasted significant advantages over traditional land farming, generating 100 times more yield per square meter while reducing operational costs, utilizing renewable electricity, and consuming 90% less water.
With two farms in Scunthorpe, Lincolnshire, and Chepstow, Gloucestershire, Jones Food Company supplied private-label products and produce under the brands Homegrown and Leaf, in addition to operating an innovation center in Bristol. However, following the company’s financial challenges, the decision to enter administration was deemed necessary to facilitate the sale of assets and potentially secure a new owner to continue the business operations.
The announcement of Jones Food Company’s administration comes amidst similar developments in the industry, with US-based Plenty Unlimited recently filing for Chapter 11 bankruptcy protection to undergo a restructuring process. The California-headquartered company sought to restructure its liabilities, streamline operations, and secure debtor-in-possession financing to sustain its business operations during the restructuring period.
In conclusion, the administration of Jones Food Company marks a significant chapter in the company’s journey, highlighting both the challenges faced by agri-food businesses and the opportunities for potential buyers to acquire a state-of-the-art vertical farming facility with immense growth potential. As the company navigates this transition, the core team continues to support the administrators in managing the site and engaging with interested parties to ensure a smooth transition for the business.
