Posts tagged with "Financing"

As business wilts, flower and gift delivery service FTD seeks bankruptcy protection

June 4, 2019

Flower and gift delivery service FTD filed for bankruptcy protection on June 3, with a plan to sell some businesses while paying down debt, according to a report by The Chicago Tribune.

In addition to FTD and Interflora, the nearly 110-year-old company—headquartered in Downers Grove, Illinois–has portfolio of brands that includes ProFlowers, ProPlants, Shari’s Berries, Personal Creations, RedEnvelope, Flying Flowers, and Gifts.com.

According to the Tribune, FTD had warned in March that it could go out of business or shrink its operations this summer if it didn’t find a buyer or raise enough money to pay back $217.7 million in debt due in September.

“With the advice and support of our outside advisors, we have initiated this court-supervised restructuring process to provide an orderly forum to facilitate sales of our businesses as going concerns and to enable us to address a near-term debt maturity,” Scott Levin, FTD’s president and chief executive officer, said in a news release. “Importantly, everyone involved with this process understands the critical role of our talented member florists, and we intend to continue supporting them as normal throughout this process.”

FTD said it is continuing to operate its businesses and has lined up $94.5 million in financing from existing lenders to fund operations while it restructures and works to sell pieces of its business.

A California-based private equity firm, Nexus Capital has agreed to buy FTD’s North American and Latin American consumer and florist businesses, including ProFlowers, for $95 million, FTD said.

It has also signed letters of intent with potential buyers for its Personal Creations and Shari’s Berries businesses. Any sales will still require the bankruptcy court’s approval.

In the meantime, FTD said its businesses are continuing to operate as usual, taking new orders and filling those already placed.

FTD’s Interflora business, which is based in Europe and is not part of the Chapter 11 filing, has been sold to a subsidiary of The Wonderful Co., based in California,  for $59.5 million, the company said.

Research contact: @laurenzumbach