TreeSap Farms, LLC, one of America's largest horticultural producers, filed for Chapter 11 bankruptcy protection on February 24, 2025, in the United States Bankruptcy Court for the Southern District of Texas. The Houston-based company, which operates 15 farms across four states and grows over 33 million plants annually, cited overwhelming debt obligations and seasonal liquidity constraints as primary factors in its decision.
According to court documents filed in Case No. 25-90017 (ARP), the company and its affiliated debtors are carrying approximately $207 million in secured debt, with Capital Farm Credit serving as the primary lender. TreeSap's operating note of approximately $155.2 million matured on February 1, 2025, creating an immediate liquidity crisis.
In a declaration supporting the Chapter 11 petitions, CEO Jonathan A. Saperstein detailed the company's struggles, noting that despite profitable operations in most regions, substantial losses in Southern California operations negatively impacted overall financial performance. Weather-related challenges, including drought conditions followed by excessive rainfall in 2022-2024, contributed to reduced sales during that period.
"The Debtors simply were not afforded the runway and support needed to reduce their debt burdens and obligations, and address debt maturities," Saperstein stated in his declaration.
The filing comes after extensive negotiations with lenders failed to produce a viable out-of-court solution. The company engaged Armory Securities, LLC in July 2024 to pursue financing alternatives but ultimately could not secure the extensions needed to implement these options. In the months leading up to the filing, TreeSap received temporary financing extensions and engaged Bret Jacobs as Chief Restructuring Officer.
TreeSap's business is highly seasonal, with peak selling periods from mid-March through June, creating cash flow challenges during winter months. The company employs approximately 1,444 full-time workers and sells to both retail and wholesale customers, including major home improvement retailers and landscape firms nationwide.
The company's leadership expressed confidence that Chapter 11 protection provides "the clearest path to maximize value for their stakeholders and the greatest likelihood for consummation of the best available transaction(s) through a transparent and competitive process before the Bankruptcy Court."
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Declaration of Jonathan A. Saperstein in Support of Chapter 11 Petitions and First Day Pleadings