Jones Food Company (JFC), a prominent player in the UK vertical farming sector, has recently entered administration, marking another example of a high-tech farming venture succumbing to financial pressures. The company, headquartered in Lydney, Gloucestershire, has ceased its operations, with staff being sent home and customer orders put on hold. The appointment of Damian Webb and Stephanie Sutton of RSM UK as joint administrators was announced in The Gazette on 3 April 2025.
JFC’s portfolio included two significant facilities: JFC1 in Scunthorpe, previously touted as Europe’s largest vertical farm and a key supplier of cut basil in the UK market, and JFC2 in Lydney, which was launched in 2023 and was praised for its scale and technological advancements.
Despite significant investments from Ocado Group, JFC’s majority shareholder, the company struggled to achieve profitability. Funding rounds of £25 million in 2021 and £3.65 million in 2023 were aimed at supporting the development of JFC2. However, financial filings indicated that the company continued to rely on external funding and faced operational losses. The need for additional funding to sustain the company’s plans for 2023 and 2024 was highlighted by the directors, ultimately leading to the decision to enter administration.
The founder and CEO of JFC, James Lloyd-Jones, expressed optimism about the company’s vision at the launch of JFC2, believing that they had made a breakthrough in providing sustainable, premium, year-round food at competitive prices. However, the challenges of achieving profitability at scale within the vertical farming sector proved to be a significant hurdle, resulting in the decision to place the business into administration.
The collapse of JFC is part of a larger trend of failures within the vertical farming industry, both in the UK and globally. Companies like Eider VF, Agricool, and Future Crops in Europe, as well as AeroFarms, Kalera, and AppHarvest in the United States, have faced similar fates. The recent filing for Chapter 11 by Plenty Unlimited, despite significant previous funding, underscores the difficulty of scaling controlled environment agriculture in a financially sustainable manner, particularly when reliant on external capital.
The uncertain future of JFC’s staff and assets adds to the complexity of the situation. With 32 employees according to the latest financial accounts, it remains unclear whether the company’s facilities or brands will be sold, and if there is interest from potential buyers.
For more information on Jones Food Company, please visit their website at www.jonesfoodcompany.co.uk or contact them via email at [email protected]
In conclusion, the collapse of Jones Food Company serves as a cautionary tale for the vertical farming industry, highlighting the challenges of achieving financial sustainability in a high-tech agricultural sector. As the company navigates through administration, the future remains uncertain for its employees and assets, reflecting a broader pattern of failures within the industry.
