Minnesota lettuce grower Revol Greens may close Owatonna greenhouse and lay off 89 workers
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Revol Greens, which grows lettuce and other greens in a massive greenhouse near Owatonna, may lay off nearly a hundred employees and close its facility in October if it can’t find a buyer for the company or an infusion of funding.
The lettuce grower told state regulators Wednesday that it would be forced to close its Medford facility about an hour south of the Twin Cites and layoff approximately 89 employees if the site or company does not secure financing or get bought out before Oct. 4.
John Carkoski, Revol Greens Vice President of Operations, emphasized in a press release Friday that Revol Greens is still committed to finding a path forward.
“We continue to evaluate all available strategic alternatives, including financing, partnerships, site-level opportunities, and other transaction structures that could support the future of the business and preserve continuity for our customers and employees," Carkoski wrote.
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Revol Greens has not ceased operations and intends to continue normal greenhouse operations through October, as it continues discussions with potential investors, lenders, and partners.
The Minnesota company, which grows its lettuce in a climate-controlled, 10-acre greenhouse, opened in 2017 and has an additional greenhouse in Texas.
This announcement comes at a time when many consumers across the country have been avoiding lettuce because of a national outbreak of a parasitic infection linked to iceberg lettuce. While none of Revol Greens products were contaminated, Carkoski explains that the Cylcospora outbreak is one of the challenges the company is facing right now.
“While Revol Greens greenhouse-grown products have continued to meet rigorous food safety and quality standards and were not implicated in the outbreak, the resulting uncertainty in consumer demand has created challenges throughout the leafy greens sector and has impacted ongoing financing discussions for many companies serving the category,” Carkoski said.
Consumer consumption of lettuce and other greens has dropped significantly as the Centers for Disease Control & Prevention investigates the multi-state outbreak of cyclospora infections linked to iceberg lettuce. Since May, it has identified at least 10,000 cases of the gastrointestinal disease — and likely many more that have yet to be confirmed. At least one outbreak has been linked to Taylor Farms, which sells its products in grocery stores and to fast food restaurants and other eateries.
“Our leafy greens are grown year-round in our controlled-environment greenhouses in Minnesota and Texas, where every step of the growing process is designed with food safety in mind,” the company wrote on its Facebook page in mid July. “From treated water and plant and mineral based fertilizers, to automated harvesting that minimizes human handling, our growing practices help us maintain a highly controlled environment from seed to harvest.”
All job losses are expected to occur on Oct. 4. There is no union at the facility.
