Park Seed/Jackson & Perkins look to restructure

On April 2, Geo. W. Park Seed Co. Inc., Park Seed Wholesale Co. and Jackson & Perkins Co. voluntarily filed to reorganize under Chapter 11 in U.S. Bankruptcy Court in the District of South Carolina. The companies indicated in a press release that customers should not be affected by the filing. Park Seed/Jackson & Perkin’s Greenwood, SC, business office, garden center, call center and web sites are open and functioning normally. Shipping and receiving areas are continuing their daily operations.
A company spokesperson said the declining economy in 2008 resulted in a sharp drop in demand for luxury, non-essential purchases. All of companies’ brands experienced significant decreases in sales for core products causing ongoing cash-flow issues. Despite the companies’ efforts to cut costs and numerous attempts to execute supplier payment programs, they were unable to meet short- and long-term operating cash requirements. The companies considered court protection and restructuring as the best option.
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.