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Park Seed/Jackson & Perkins restructuring


April 5, 2010
By Dave Harrison


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April
5, 2010 – On
Friday, April 2, 2010, the Geo. W. Park Seed Company, Inc., Park Seed
Wholesale
Company, and the Jackson & Perkins Company voluntarily filed to
reorganize
under Chapter 11 of the Bankruptcy Code in U.S. Bankruptcy Court in the
District of South Carolina. Customers should not be affected by the
filing.



April
5, 2010, Greenwood, SC – On
Friday, April 2, 2010, the Geo. W. Park Seed Company, Inc., Park Seed Wholesale
Company, and the Jackson & Perkins Company voluntarily filed to reorganize
under Chapter 11 of the Bankruptcy Code in U.S. Bankruptcy Court in the
District of South Carolina. Customers should not be affected by the filing.

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Park
Seed/J&P’s Greenwood, S.C., business office, garden centre, call centre and
websites are open and functioning normally. Shipping and receiving areas are
continuing their daily operations, delivering products to gardeners as their hardiness zones open for the spring.

According
to a company spokesperson, “the horticulture industry is challenging and highly
seasonal in the best of times. As the general economic situation declined
starting in 2008, demand for luxury, non-essential purchases dropped sharply.
All of our brands experienced significant decreases in sales for core products,
including roses, perennials, and garden-inspired gifts. This created cash flow
issues that worsened with each passing season. Despite deep cost-cutting and
numerous attempts to execute supplier payment programs on our own, we simply
could not meet our short- and long-term operating cash requirements. Seeking
court protection and restructuring is clearly our best option for returning to
a position where we can focus on delighting our customers and resuming sound
relationships with our supply chain partners.”

The
companies are currently functioning as a “debtor in possession,” under the
leadership of a court-appointed Trustee. The companies have 120 days following
the filing to prepare a plan that contains a new capital structure for the
company and that treats all creditors equitably. The Park Seed Company/Jackson
and Perkins management team is confident that this experience will ultimately
strengthen the business and lead to long-term success.

 

BACKGROUNDER

The
Geo. W. Park Seed Company, Inc. (ParkSeed.com) has been providing innovative,
top-quality gardening products to generations of American gardeners since 1868.

Founded
in 1872, Jackson & Perkins is America’s premier name in roses and
garden-inspired gifts (JacksonandPerkins.com).

Park Seed Wholesale has everything needed to run a small
to medium-sized greenhouse, nursery, or growing operation. Since 1870, Park
Seed Wholesale (ParkSeedWholesale.com) has been known for delivering
world-class products with down-home, friendly service.