Jun 4, 2019

Flower delivery company FTD files for bankruptcy

Flowers being delivered. Photo: Dário Oliveira/Anadolu Agency/Getty Images

FTD (Nasdaq: FTD), the Illinois-based flower delivery network, yesterday filed for Chapter 11 bankruptcy protection and agreed to sell its North America and Latin America businesses (including ProFlowers) to Nexus Capital Management for $95 million.

Why it matters: This is really about an earlier, much-hyped deal gone bad. FTD in 2014 paid $430 million to buy ProFlowers, so it could move big into non-floral gifting and increase its share of the e-commerce consumer flowers business from 8% to 18%. But it struggled to service the merger's $120 million in debt, ultimately unable to make payments due this past weekend.

  • FTD also will sell its U.K.-based Interflora unit to The Wonderful Co. for $59.5 million and signed letters of intent to sell its Personal Creations and Shari’s Berries businesses to undisclosed buyers.

The bottom line: "The deep-rooted middleman for the florist industry traces its lineage to 1910, when it started as a network of U.S. florists who used telegraph communication to trade out-of-town orders, according to the court declaration.It operated as a not-for-profit until 1994, when it was acquired by Perry Capital." — Jeremy Hill, Bloomberg

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  1. Global: Total confirmed cases as of 3 a.m. ET: 1,484,811 — Total deaths: 88,538 — Total recoveries: 329,876Map.
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  4. States latest: New York has reported more cases than the most-affected countries in Europe. Chicago's Cook County jail is largest-known source of coronavirus in U.S.
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  7. Environment: COVID-19 is underscoring the connection between air pollution and dire outcomes from respiratory diseases.
  8. Tech: A new report recommends stimulus spending to help close the digital divide revealed by social distancing.
  9. What should I do? Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  10. Other resources: CDC on how to avoid the virus, what to do if you get it.

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