AppHarvest
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Development and operation of climate-controlled indoor farms.
02 / AppHarvest FAILURE REASONS
Failure factors supported by the current evidence
CRO Gary Broadbent’s 24 Jul 2023 first-day declaration in the Southern District of Texas bankruptcy restructuring cases states AppHarvest entered a liquidity crisis from late 2022 because of lower-than-expected yields across crops, higher-than-expected costs, tighter equity markets, and declining stock prices, forcing it to seek alternatives including the filing.
Lower-than-expected yield across all crops contributed to the liquidity crisis.
The company experienced a significant liquidity crisis beginning at the end of 2022.
Tightening equity markets and declining stock prices were cited alongside higher-than-expected costs.
03 / EVENT HISTORY
Events in the structured record
- Bankruptcy
AppHarvest, Inc. and affiliates filed voluntary bankruptcy restructuring petitions on 23 Jul 2023 in the U.S. Bankruptcy Court for the Southern District of Texas (later jointly administered as 23-90745).
- Liquidation
On 14 Sep 2023 the court confirmed the Second Amended Joint Plan of Liquidation of AppHarvest Products, LLC and debtor affiliates.
- Liquidation
The 5 Dec 2023 Form 8-K states the plan effective date occurred that day and all outstanding AppHarvest common stock was cancelled and discharged.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
On July 23, 2023, AppHarvest and certain affiliates file voluntary petitions for Chapter 11 relief in the U.S. Bankruptcy Court for the Southern District of Texas; the court approves a $30 million debtor-in-possession financing package from Equilibrium Capital.
- 02
On September 14, 2023, the court confirms the Second Amended Joint Plan of Liquidation of AppHarvest Products, LLC and its debtor affiliates.
- 03
Under the plan, the company's greenhouse assets are sold off: the Somerset farm to Bosch Berries Kentucky Operations (closed December 1, 2023), the Morehead and Richmond farms to Equilibrium Capital, and the Berea operations are transitioned to distribution partner Mastronardi Produce.
- 04
On December 5, 2023, the plan becomes effective: all outstanding shares of AppHarvest common stock are cancelled and discharged, and the company deregisters its securities with the SEC.