A buzzy, high-tech indoor farm that boasted it could grow produce year-round called Planted Detroit is closing its business next month, the company announced Wednesday.
The farm opened its indoor growing facility in 2018 at 1000 Mt. Elliot St. in Detroit’s Islandview neighborhood, soon filling the 20,000-square-foot building and hiring up to 60 workers.
In a press release, the company said it is winding down its operations to close on Aug. 4.
“In the past month, Planted Detroit, like much of the [controlled environment agriculture] industry, faced investment turbulence and funding constraints,” the company said in a statement. “Despite the company’s efforts to drive sales, cut costs, and secure investments, these challenges could not be overcome.”
The farm will continue to deliver salads and greens to its customers through July 28. After that point, it will offer products by pickup only from July 31 to Aug. 4, when it plans to lay off its team of more than 40 workers.
“While Planted Detroit is still seeking outside investors to take over operations and restore the longevity of the company, there is no guarantee of that and business decisions cannot be made based on this hope,” the company said.
Planted Detroit got attention in the media for its high-tech operation, which uses techniques like LED lights and hydroponics, or growing produce in a water-based nutrient solution rather than soil. It was founded by Thomas Adamczyk, who previously worked on mergers and acquisitions within the food industry, as well as managing investments.
Last year, Adamczyk told Crain’s Detroit Business that he had funded the business himself and hoped to raise $50 million in a combination of debt and venture capital. In another Crain’s article, the company said it had revenue of $200,000 in 2021 and expected to grow to $500,000 in 2022.
Just last week, Planted Detroit was featured on CBS News, where it said it had nearly 1,500 customers and sold its products in Detroit’s Eastern Market as well as grocery store chains like Meijer and Plum Market. It also announced plans for an expansion that would include a second farm.
Megan Burritt, Planted Detroit’s leader of business development, told CBS News that the farm’s vision was to provide food security for Detroiters.
“We see how much agriculture is compromised by climate change and different things that are happening in the economy and we want to be a stable source of healthy, delicious food for Detroiters forever,” Burritt said.
The company declined additional comment.
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