[ad_1]
FTD Companies announced Monday that it was bankrupt, succeeding a debt of about $ 200 million that the flower delivery company and gifts bought to buy ProFlowers in 2014. The purchase his rival was a decision which, he hoped, would prevent the upheavals of the sector.
At the time of the transaction, ProFlowers bought their flowers directly, which allows them to offer similar products at a lower cost. Considering the new model as a threat, FTD acquired ProFlowers. But FTD has not been able to fully integrate the two companies. Its objectives, which consisted in consolidating technological investments and badociating sales and marketing teams, never fully materialized.
After the transaction, sales began to slide. Sales in the florist sector decreased by 1% in 2016 compared to the previous year. In 2017, this gap has widened to 9%.
"While debtors have struggled to unify their businesses and implement Provide's acquisition, the floral industry – and consumer expectations – have continued to evolve," said Chief Executive Officer Scott Levin in documents filed Monday in Bankruptcy Court.
New competitors have appeared and Amazon's Premium Membership Program has put pressure on all retailers for them to deliver fast delivery.
FTD stated that it has received commitments for approximately $ 94.5 million in debt debtor financing to finance its operations during the bankruptcy.
She also stated that she has entered into a number of sales contracts for her companies.
It has entered into a $ 95 million sales agreement with ProFlowers and its remaining operations in North America and Latin America to a subsidiary of private equity firm Nexus Capital.
It also sold its Interflora UK business, which is not part of the chapter 11 file, to a subsidiary of The Wonderful Company for $ 59.5 million.
It has aroused the interest of an unnamed strategic investor to acquire Personal Creations and the founder of Edible Arrangements, Tariq Farid, to acquire Shari's Berries.
At the time of filing for bankruptcy, FTD had approximately 872 full-time, part-time, hourly and salaried employees in North America.
The company announced in a statement released on Monday that it would continue to support its network of florists as its activities are proceeding normally.
"The important actions we are undertaking today are designed to allow us to continue to support our network of florists and business partners and to serve consumers while complementing initiatives from our strategic badysis," Levin said. a statement.
Source link
