Baltimore-based meal kit company Terra’s Kitchen has filed for chapter 7 bankruptcy, according to court documents, the Baltimore Sun reported. A bankruptcy petition filed in Maryland’s District Court this week lists the company’s assets at just over $15,000, while their debts come to nearly $20 million. Investors include Hunt Valley, Md.-based Sinclair Broadcasting, owed more than $1 million, and former CEO Michael McDevitt, who invested around $6 million in the company. Tuhaye Venture Partners of New York invested more than $3 million, according to the filings. A meeting of creditors is scheduled for Nov.1 at Baltimore’s Garmatz Courthouse. CFO Brendan Connors wrote in a letter this week to investors that the company would cease operations after struggling to raise capital “in the current environment surrounding the meal kit space.” The meal kit’s website tells customers: “We are taking a short break from day-to-day delivery operations starting August 12th.” Terra’s Kitchen allowed diners to subscribe to weekly or monthly deliveries, with vessels that come packed with everything needed to prepare meals in around 30 minutes. The company also recently settled a class action lawsuit with California customers regarding subscription disclosures. In a separate case, a judge ordered the company to pay more than $100,000 to Baltimore’s Jellyfish Online Marketing.
