Floramoda Inc. finalizes purchase of Nurserymen’s Exchange's assets

Floramoda Inc., a subsidiary of Monterey Peninsula Horticulture Inc. (MPH), in Salinas Calif., has finalized the purchase of the operating business and accompanying assets of Nurserymen’s Exchange Inc., reports the Business Wire. Nurserymen’s Exchange in Half Moon Bay, Calif., is a wholesale grower of indoor flowering and foliage plants marketed under the BloomRite brand.

Nurserymen's Exchange will continue to operate under its name at its existing location. Floramoda has retained Nurserymen Exchange’s 141 employees who will receive a full complement of benefits, including seniority.

The remaining assets of Nurserymen’s Exchange remain under Chapter 11 protection and will be identified under the name Tally One Inc. The disposition of these assets, including certain large land parcels, will fund the estate and be used to pay creditor claims.

The Mercury News reports the sale of Nurserymen’s Exchange to MPH for $4 million was approved in a San Francisco bankruptcy court on July 20. The money was paid to prime creditor Well Fargo. The newspaper said Tally One owes Wells Fargo an additional $11 million and its other creditors $9.4 million.

Charles Kosmont, CEO of MPH said combining strengths of Nurserymen’s Exchange with those of  MPH would create the third largest greenhouse growing operation in the industry.

“By optimizing our strengths, we intend to develop a ‘one-stop’ solution experience and new product opportunities for the benefit of customers and vendors alike,” Kosmont said. “In an industry that has seen considerable deterioration in recent years, our expanded organization shines a bright light on the future.”

MPH also plans to introduce an institute for the advancement of floriculture. The new organization, preliminarily titled the Institute for Floriculture Innovation – A Global Consortium, is designed to bring together people from multiple industries and academia, including horticulture, food, fashion and design, to drive innovation throughout the indoor flowering pot plant segment. During the next 9 months, Kosmont and his team will seek to attract participants worldwide.

 “By establishing the Institute for Floriculture Innovation, we can create a common ground on which the industry can build for the future.” Kosmont said. “The Institute is meant to overcome competitive factors in favor of stimulating new ideas that can increase demand and make floriculture as much a part of daily life as eating breakfast. The new consortium should result in implementable ideas that revitalize floriculture as we know it while it serves as an incubator for the next generation.”