Florist FTD and all of its domestic subsidiaries have filed voluntary petitions commencing cases under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware to facilitate the company’s restructuring.
The company intends to use the court-supervised restructuring process to support and protect its ongoing business operations, including its relationships with member florists and business partners, to provide an efficient and binding mechanism for the potential sales of its businesses and to address a near-term debt maturity.
The company has already made significant progress completing its strategic initiatives, including
- Entering into a definitive asset purchase agreement with an affiliate of Nexus Capital Management to acquire FTD’s North America and Latin America Consumer and Florist businesses, including ProFlowers
- Entering into a non-binding letter of intent with a strategic investor to acquire Personal Creations
- Entering into a non-binding letter of intent with Farids & Co., which is owned by Tariq Farid, founder of Edible Arrangements, LLC, to acquire Shari’s Berries
- Completing the sale of U.K.-based Interflora to a subsidiary of The Wonderful Company
- Implementing a new operating model for ProFlowers to better support the FTD florist network and reduce costs by also harnessing our third-party drop-ship network.
“The important actions we are taking today are designed to enable us to continue supporting our network of florists and business partners and serving consumers while we work to complete the initiatives coming out of our strategic review,” said Scott Levin, FTD’s president and CEP. “Over the last several months, we conducted a robust strategic review to determine the best path forward for our company.”
The company has received commitments for up to approximately $94.5 million in debtor-in-possession financing from a syndicate comprised of its existing lenders. Upon approval by the Bankruptcy Court, this financing, combined with cash generated from the company’s ongoing operations, will be used to, among other things, support the business during the court-supervised restructuring process. According to first day motions filed with the court, Bank of America is serving as administrative agent for the DIP.