Sedalia container farm startup files for bankruptcy

FarmBox Foods, a Sedalia-based company that grows produce inside repurposed shipping containers, filed for Chapter 7 bankruptcy protection on October 19. The filing indicates the business is winding down operations. The startup, founded in 2017 by Jake Savageau and Tony English, gained national attention in 2022 when it appeared on Good Morning America.

The company’s hydroponic systems do not use soil. In that 2022 interview, CEO Rusty Walker claimed the containers used 99% less water and grew crops three to four times faster than traditional farming. He estimated that a single 40-foot insulated container could yield the output of two and a half to three acres of farmland. Previous reports noted that a container cost $150,000 upfront and required $20,000 to $40,000 annually for maintenance.

Financial filings show FarmBox held $1.6 million in assets against $4.4 million in liabilities at the time of the bankruptcy. The company reported $1.3 million in revenue for the current year, a figure that exceeds the combined totals of $316,000 from 2025 and $761,000 from 2024. Despite this revenue, the business owes three manufacturers a combined $1.6 million. Two of those manufacturers are based in Colorado. FarmBox also owes $756,000 to Cornucopia Farms in Maryland and $250,000 to UMB Bank.

Three active lawsuits allege the company failed to deliver paid-for farms. A dispute with a Filipino company, which has since been settled, claimed FarmBox kept $113,000 from a $163,000 order for a custom container. The Cheyenne Mountain Zoo in Colorado Springs sued after FarmBox delivered one of two ordered $200,000 farms but failed to provide a second one that was 90% paid for. A Douglas County District Court judge ordered the zoo to receive the missing farm after FarmBox did not respond in court.

A third lawsuit was filed by local real estate broker Brandon Schmidt, who is also the company’s landlord. Schmidt alleges FarmBox owes him $1.1 million for three undelivered boxes and other costs. He says the company promised to run a gourmet mushroom farm at its Sedalia headquarters but failed to deliver. The bankruptcy filing halted Schmidt’s case. He is also owed $44,000 in unpaid rent from the last few months. Schmidt stated the company fired all employees in July and that the lease at the headquarters runs through May.

Co-founder Tony English, who owns 15% of the company, said he hired Walker five years ago to manage operations while he returned to his real estate business. English described the situation as heartbreaking and said he did not know why the bankruptcy was filed. CEO Rusty Walker, who holds a 30% stake, and bankruptcy attorney Aaron A. Garber did not respond to requests for comment. David Teuscher, the company’s chief medical officer and board chair, is owed $660,000 and owns 26% of the business. Savageau owns the remaining 25%.

At the time of the filing, six farming containers were still with manufacturers. The company’s headquarters remains in Sedalia, where it operates out of a building it leases from Schmidt.