What 80 Acres disclosed before it shut down vertical farming operation

What 80 Acres disclosed before it shut down vertical farming operation

Vertical farming startup 80 Acres Farms was trying to sell itself when the pending deal abruptly collapsed, forcing the company's decision to shut down operations this month, according to a government filing.

"On the evening of Aug. 2, the prospective acquirer unexpectedly withdrew from the transaction. Without the anticipated transaction proceeds and with no other funding available to sustain operations, the Company was required to make the immediate decision to wind down its business," CEO and co-founder Mike Zelking wrote in a letter to Ohio officials explaining the pending shut down.

Zelking said 145 local workers would lose their jobs between Aug. 3 and Aug. 17, according to a letter submitted with its Worker Adjustment and Retraining Notification (WARN) to the Ohio Department of Job & Family Services.

The letter did not identify the company with which 80 Acres was negotiating to sell itself.

80 Acres appeared to be on the rise

80 Acres' pending demise stands in sharp contrast to its seemingly boundless potential only a year ago as it grew via acquisitions.

The Hamilton-based company, which grows lettuce and other vegetables indoors using LED lighting, announced a merger with Soli Organic that was expected to boost total annual revenues to nearly $200 million. The deal added 1,000 workers to 80 Acres’ then-400 employees. The deal also expanded 80 Acres’ distribution of its salad kits for grocery stores to more than 17,000 stores nationwide, allowing it to keep selling to Cincinnati-based Kroger but also Walmart, Meijer and H-E-B.

But amid the growth, there were obvious signs of industry volatility. Another 2025 acquisition that added three growing facilities was from a bankrupt peer, Kalera.

80 Acres was navigating the perilous path of all startups, trying to grow sales while depending on the patience and risk-tolerance of investors backing them.

A rough year for the food industry

So far, 2026 has been a daunting year for the food industry as consumers have been squeezed by continued inflation and rising gas prices that ticked up amid the war in Iran.

Besides strapped U.S. consumers, the spike in inflation during this decade has also driven up electricity prices and lending costs for the company that needed to power lights for greenhouses and loans to build more of them.

Another challenge emerged as lettuce sold in supermarkets has been blamed for this year’s cyclosporiasis outbreak, which the U.S. Centers for Disease Control and Prevention has confirmed to have sickened more than 10,000 people and suspected to have affected thousands more.

Startups often endure years of unprofitability as they seek to establish themselves and face the constant threat of investors refusing to risk further money. On Aug. 3, 80 Acres said in a statement conceded that’s what happened.

“We’re proud of our work … Unfortunately, under current circumstances, we could not secure the capital required to continue that work,” Zelkind said in a statement.