Dutch plant nursery Jongerius has now officially been declared bankrupt. The largely organic nursery, which played a key role within European organic horticulture, suddenly announced on 31 October that it would cease operations. In the weeks that followed, uncertainty reigned for employees, growers and customers alike. Both a possible restart and bankruptcy were still on the table.
Jan Groen, chairman of organic sector organisation Bionext, heard the news of the bankruptcy ruling from operations director Gertjan Lekkerkerker. "He sent me a message yesterday morning saying that the bankruptcy had been declared and that a trustee would be appointed. Later that day I saw confirmation of this."
According to Jan, the appointment of a trustee is an important step. "We finally have a legal point of contact. That makes it possible to even have a conversation about what is still possible and what is not. Until now, that was difficult because the owner and management were unreachable."
Staff have priority
Jan says the trustee's first focus is on the employees. "It's a difficult time, especially so close to Christmas. You want people to get clarity as quickly as possible. The pressure is now fully on helping the staff move forward and offering them some perspective."
He adds that staff are still present and appear willing to explore a possible future together. "The willingness of employees to stick together and look into whether a continuation of the business is possible is high. That's an important factor."
Regarding salary payments, Jan says wages were paid up to early December. "Since then I haven't received any signals that payments have continued. The trustee has indicated that the UWV will be involved as quickly as possible."
Restart: promising, but below 50 percent
Whether a restart is still possible remains an open question. Jan gives a cautious estimate. "If you put it on a scale, the chances are just under fifty percent. But speed is crucial, because the longer it takes, the smaller that chance becomes."
© Green Organics
The key conditions for a restart are clear, according to Jan. "You need buildings, machinery, people and insight into the financial figures. And you need to know exactly what has gone bankrupt, because multiple limited companies are involved. That needs to become clear quickly."
The coming weeks will be decisive. "There needs to be clarity between now and the second week of January. Otherwise you miss the season, and a restart becomes practically unfeasible."
Previously announced bankruptcy dates at the end of November and on 9 December did not go ahead, despite earlier statements by the operations director suggesting bankruptcy was imminent.
Owner unreachable
This led to further uncertainty within the sector. With the court ruling, a trustee has now been appointed — Marco Guit of AMS Advocaten — providing the first legal point of contact since the end of October. Owner Nico Jongerius has so far remained completely silent and unreachable for comment.
The trustee is investigating the financial situation, inventorying debts and examining whether parts of the company can be sold or whether a restart is possible. He told RTV Utrecht that he has not yet made contact with management and does not have a complete staff list. Employees have been asked to come forward so that the procedure for paying outstanding wages can begin. Several employees have indicated they have not received their salary for the past month.
Power cut off and auction of machinery cancelled
As time passed, a restart seemed increasingly unlikely. Due to a dispute with the energy supplier, the company has been without power since the end of October, leaving employees in ongoing uncertainty.
An enforcement auction was held at the end of November, but was amended at the last minute so that crucial machinery in Houten remained on site. What will happen next with the greenhouses, the staff and the machinery now appears to be in the hands of the trustee.
Jan does not see the lack of contact with the owner as decisive for the success of a restart. "Ultimately, what matters is whether there is a party with the knowledge, the resources and the willingness to continue with the people. That is more important than whether the owner cooperates directly."
Market has already absorbed much
Meanwhile, a large part of the market has not stood still. "As Bionext, we focused early on the question: where are the gaps and who can fill them? Other plant nurseries, including in Germany and Belgium, have scaled up. Part of the market has already been filled."
In the short term, more and more companies have made their own choices for organic propagation. Some found solutions with fellow nurseries; others started growing plants themselves, sometimes in cooperation with fellow growers. Within the organic sector, work is also underway on a long-term, sustainable solution to replace Jongerius, potentially in the form of a cooperative, as organic supermarket chain Odin recently suggested.
No one stood still
According to Jan, there is a great deal of entrepreneurship visible in the sector. "No one stood still. Everyone is looking at what they can do within their own possibilities. That shows how strong the sense of solidarity is in the organic sector."
If no restart takes place, Jan does not expect major disruption. "The market will absorb it further. There is enough entrepreneurship in the organic sector to handle this. It's not ideal, but it's not a disaster either."
He does see risks for smaller growers. "Smaller initiatives, such as CSA projects and Herenboeren, in particular depend on accessible organic plant propagation. For them, a restart would really make a difference."
Causes mainly company-specific
According to Jan, little can be said with certainty yet about the causes of the bankruptcy. "I think this is mainly company-specific. The last publicly available annual accounts date back to 2021. Since then, there has been no up-to-date insight into the figures. That makes it difficult for anyone to think along."
Rising costs, such as energy prices, may have played a role, but do not explain everything. "I don't get the impression that this says anything about the position of organic compared to conventional production."
What stands out most to Jan is that no request for help was made. "That may be the most important lesson. When entrepreneurs notice things are getting tough, they need to raise the alarm in time. There are banks, advisers and sector parties willing to think along, but entrepreneurs need to proactively make contact and be transparent."
Importance of chain cooperation
The main lesson Jan draws is the importance of cooperation throughout the supply chain. "Organic agriculture requires commitment across the entire chain, from producer to buyer. If you think you can solve it alone, it becomes difficult."
Despite everything, Jan remains positive about the resilience of the sector. "The organic sector will continue, with or without Jongerius. Bankruptcies have always existed. What you see is that things are picked up again every time." For now, hope is focused on swift clarity. "Not only for the market, but especially for the people who work there. They deserve a new perspective as soon as possible."
For more information:
Jan Groen
Bionext
Bennekomseweg 43
6717 LL Ede
Tel: +31(0)30-2339970
[email protected]
bionext.nl
