Revol Greens may close Medford facility

Revol Greens, which grows lettuce and a variety of other greens, has announced it may close its greenhouse in Medford and lay off nearly 100 employees if it cannot find a buyer for the company or an infusion of capital.

A WARN Act notice was sent on Aug. 5 to employees at the Medford and Texas facilities and the Minnesota Department of Employment and Economic Development.

The WARN notice reflects the possibility of a facility closure if the company is unable to secure financing, a transaction, or another path forward.

Revol officials said the notice was issued as a precautionary measure while the company continues to pursue financing opportunities and evaluate strategic alternatives as it supports continued operations and the long-term future of the business.

"While current market conditions have created significant challenges, we remain committed to finding a path forward for Revol Greens and its greenhouse operations,” John Carkoski said in an email to the Steele County Times on Friday. “The WARN notice is a prudent step that provides flexibility as 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."

Contacted Friday afternoon, Medford Mayor Danny Thomas said he was unaware of the potential closing but that the company does provide employment to a number of Medford residents.

The action follows a significant market disruption across the lettuce category as a result of the recent Cyclospora outbreak. Carkoski said that the company’s greenhouse-grown lettuces have continued to meet rigorous food safety and quality standards and were not implicated in the outbreak, but the resulting uncertainty in consumer demand created challenges throughout the sector and has impacted on-going financing discussions for many companies serving the category.

He said Revol has not ceased operations and intends to continue normal greenhouse operations throughout the 60-day WARN period while discussions with potential investors, lenders, strategic partners and other interested parties continue.

Revol Greens opened its first greenhouse in Minnesota in 2017. It currently also has a greenhouse in Temple, Texas.

According to company information, the greenhouse offers 10 acres of indoor production which is the equivalent of 300 acres of outdoor farmed lettuce.