Floral And Gift Retailer FTD Files For Chapter 11 Bankruptcy, Looks To Sell Off Subsidiaries

FTD Companies, Inc. (FTD) has filed for Chapter 11 bankruptcy protection after 110 years in business. The floral and gift retailer is looking to restructure the company while it looks to sell off portions of its business and address the debt it has accumulated.

To date, FTD said it has entered into a purchase agreement with Nexus Capital Management LP to acquire its North America and Latin America Consumer and Florist business for $95 million in cash, which also includes ProFlowers. The company has also received a letter of intent to sell its Personal Creations business while its Shari’s Berries subsidiary is expected to be sold to the founder of Edible Arrangements – Tariq Farid.

FTD has also sold it U.K.-based Interflora subsidiary to The Wonderful Company for $59.5 million while developing a new operating structure for ProFlowers to “better support the FTD florist network.” Interflora is an independent FTD business, which is not a part of the Chapter 11 bankruptcy filing, the company said.

"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," Scott Levin, FTD president and CEO said.

"Over the last several months, we conducted a robust strategic review to determine the best path forward for our company. 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.”

FTD said it has received $94.5 million in debtor-in-possession (DIP) financing from its existing lenders. The company said the DIP financing along with cash generated for the company’s current operations will be used during the restructuring process. The company is also looking to continue payment and services to member florists and business partners as well as its relationship with its vendors and customers through the Chapter 11 filing. FTD said it will also continue paying wages and offering benefits to its employees.

Jones Day has been appointed as the legal advisor for FTD with Moelis & Company LLC and Piper Jaffray & Co. serving as the investment bankers and financial advisors. AP Services, LLC is the chief restricting officer for the company.

FTD has been delivering flowers since 1910 under the ProFlowers, Shari's Berries, Personal Creations, Gifts.com, and ProPlants brands.

Shares of FTD stock were down 0.5449 percent as of 11:50 a.m. ET on Monday.