Two days after co-founder and CEO Andrew Carter announced his departure from the Brooklyn, NY-based company via a LinkedIn post, Smallhold Inc. has filed for Chapter 11 bankruptcy protection.
According to the February 18 filing, Smallhold has liabilities between $1 million and $10 million to 200-999 creditors, and assets valued between $10 million and $50 million including three farms: in Brooklyn, Buda, TX, and Vernon, CA.
The company’s 2022 tax filing showed it posted $6.3 million in sales, an increase from $3.4 million the prior year. However, its cost of goods sold rose three times from 2021 to 2022, leading to an income loss of $2.8 million compared to $367,000 total income in 2021. Taxable income rose from -$6.8 million in 2021 to -$14.7 million in 2022.
Monomyth LLC, a Glenview, IL-based company, has a 90 percent stake in Smallhold Inc., according to the filing.
Smallhold started in 2017 in a shipping container in Brooklyn, and supplies specialty mushrooms to more than 1,000 stores across the U.S.
