Walmart and grocery chain supplier 80 Acres Farms files for Chapter 7 bankruptcy
For most shoppers, the grocery supply chain was invisible for years. Even retail experts rarely gave it a second thought when walking through a supermarket; shelves were full, and the produce section had what consumers needed.
The pandemic changed that. When stores ran low on key items, supply chains suddenly became a topic at the dinner table. Some shortages were minor: reaching for Bounty and settling for Brawny or even Viva. Toilet paper was a different story. With millions of Americans working from home, household demand surged while commercial supply chains were not set up for the shift.
“People are worried about the food supply chain,” MIT supply chain expert Yossi Sheffi said during the height of the pandemic in 2020. “However, the U.S. food supply chain is very robust. There is unbelievable panic buying, but if you go to the [major chain] stores in the morning, most of them are well-stocked.”
That experience made supply chains a mainstream concern. Now the grocery industry is facing a different kind of disruption: the collapse of 80 Acres Farms, a major produce supplier for Walmart, Albertsons, Safeway, H-E-B, The Fresh Market and Meijer.
The Ohio-based vertical farming company filed for Chapter 7 bankruptcy on Aug. 25 in Delaware court, according to court documents on PacerMonitor. The filing lists both assets and liabilities in the $100 million to $500 million range.
80 Acres Farms may not be a household name, but its reach was significant. The company supplied branded salads, salad kits, herbs, microgreens and dressings to more than 17,000 retail locations nationwide. It described its operation as a network of “smart farms” producing pesticide-free produce year-round for retailers and foodservice partners.
The bankruptcy filing was surprising in part because the company had expanded its microgreens line in January. The new line launched at Albertsons, Dorothy Lane Markets, The Fresh Market, H-E-B, King Soopers, Mariano’s, Meijer, Metro Market, Pick ‘n Save, Safeway and Walmart. U.S. Foods also carried the microgreens for restaurants.
“Microgreens deliver some of the most concentrated flavor and nutrition you’ll find in fresh produce, which is why they’ve been an important part of our business for years,” CEO Mike Zelkind said at the time of the launch. “This expansion demonstrates our retail partners’ confidence in our ability to deliver that quality and consistency at scale.”
But the company was unable to secure the capital needed to continue. AgFunderNews reported that Zelkind said the business was winding down.
“After an exhaustive effort to find a way forward, 80 Acres Farms is winding down operations,” Zelkind said. “We’re proud of our work, the problems we solved, and the fresh, clean produce that fed so many people. Unfortunately, under current circumstances, we could not secure the capital required to continue that work.”
80 Acres Farms had raised more than $350 million and merged with Soli Organic in 2025 to create what the companies described as “one of the world’s largest and most advanced indoor farming networks.” At the time, Zelkind said he still believed strongly in the industry, according to AgFunderNews, and hoped the combination would mark the start of a new era.
The company’s closure adds to a long list of vertical farming companies that have shut down since 2022, including Plenty, Infarm, Bowery and others. Rising energy costs, the difficulty of competing with cheaper traditional farming and higher interest rates have all weighed on the sector, according to University College London Professor Gail Taylor.
“Plant factories are failing, with multiple companies closing or going bankrupt in recent months. This includes the largest vertical farm on the planet, in Compton, Los Angeles,” Taylor wrote. She said she still believes indoor farming has a future, but the sector faces significant headwinds right now.
The broader indoor farming market is still projected to grow. Grand View Research valued the global market at $50.9 billion in 2025 and projected it would rise from $56.4 billion in 2026 to $119.7 billion by 2033, a compound annual growth rate of 11.3%. Europe held the largest regional share in 2025, with 32.1% of revenue, according to the firm.
The immediate effect for shoppers may be subtle, since large grocers can usually shift orders to other produce suppliers. But losing a major indoor grower reduces retail options for pesticide-free greens and could slow the expansion of year-round domestic produce programs.
For now, 80 Acres Farms products are no longer on store shelves. The brand could return if a buyer acquires its assets and decides to restart operations, but no such agreement has been announced.
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This story was originally published by TheStreet, where it first appeared in the Restaurants section.