BROOKLYN, N.Y.--(BUSINESS WIRE)--Smallhold Inc., a Certified B-Corp and national leaders in organic specialty mushrooms, today announced completion of its restructuring process and exit from Chapter 11 (subchapter V). Smallhold's emergence from Chapter 11 is led by investment from existing shareholder Monomyth Group.
“This marks a new chapter in the growth and future of Smallhold,” said Chip Dunn, Founder & CEO of Monomyth Group. “The Smallhold team has built the leading specialty mushroom brand in the US. We have now put in place changes needed to execute on that vision. We are focused on evolving and scaling our national operations to deliver the same category-leading products and service through a profitable business model.”
As part of this broader reorganization, the co-founders of Smallhold both resigned from their respective positions in February 2024, leaving behind a remarkable leadership team to shepherd Smallhold through this in-court restructuring. Early in the reorganization process, Smallhold also made the difficult decision to close its farms in Texas, New York and California to focus immediately on securing the brand value built over the last seven years.
With these closures, Smallhold shifted to a partnership model, working with independent, Certified Organic farms across the country to build a more diverse and resilient supply chain. This approach is built upon the bedrock principle that first inspired Smallhold: distributed network farming. Through its regional partner farm network, the company is improving supply chain efficiency, lengthening shelf life for fresh mushrooms at stores and future-proofing the overall business.
The Smallhold team remains focused on growing its portfolio of value-added packaged products, designed to rescue surplus and imperfect mushrooms in its supply chain, with an ultimate goal of inspiring and deepening appreciation for mushrooms in North America.
Currently Smallhold Mushrooms can be found on the shelves of over 700 retail locations, including nationwide at Whole Foods Market stores, as well as Sprouts on the West Coast and Central Market stores in Texas.
“We could not have gotten through this challenging time without the unwavering support and commitment from our retailers and customers,” said Aurora Porter, Smallhold Chief Sales Officer. “Their support is a testament to our years-long partnerships and their values-driven approach with vendors. We are incredibly excited to expand our partner farm network, make strategic investments, and continue to grow the mushroom category with the support of our community.”
Throughout the six-month reorganization process, the company has been run by a small, dedicated group of the existing leadership team, complemented by interim support and advisors. “Smallhold is emerging stronger and more resilient than ever. The team has worked tirelessly to preserve the company's brand and values,” said Shawn Bray, Smallhold Director of HR and People. “Smallhold has a bright future ahead.” As originally planned and under the conditions of the Court-approved reorganization, PTO to former employees has been paid.
The Smallhold mission remains unchanged: eat more mushrooms. By partnering with farmers in communities across the country, Smallhold will always strive to help people connect with their food, environment and fungi.
Court filings and other documents related to the reorganization proceedings are available on a separate website administered by the Company’s claims agent, Epiq, at https://dm.epiq11.com/case/smallhold/info or www.deb.uscourts.gov, the official Bankruptcy Court website. The Company will continue to provide regular updates as specific elements of its strategic plan and Chapter 11 filing meet targeted milestones.
