Floral products marketer Gerald Stevens Inc., Fort Lauderdale, FL, plans to file Chapter 11 bankruptcy today for itself and certain operating subsidiaries.
The suit will be filed with the U.S. Bankruptcy Court in Miami.
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Gerald Stevens is seeking immediate authority from the court to give preferential terms to its essential vendors that will continue to provide product and services. Post-petition obligations to vendors, employees and others will be paid promptly in the normal course of business without the need to obtain special court approval, according to news reports.
The company said it had formed an agreement with Bank of America to provide a $7 million line of credit, which, subject to court approval, will be available to fund the company’s cash requirements, the report said.
The company said it hopes to conduct business as usual with help from the line of credit and sales from the upcoming Mother’s Day holiday and the recent Easter holiday.
Layoffs or changes in the management team are not expected as a result of today’s filing, the report said.
Following a fall 2000 restructuring of management, the company has cut more than $18 million in annual corporate and operating overhead expenses, implemented new initiatives to improve operations, and divested non-core assets totaling $15 million, including the recently completed sale of its catalog business, Calyx & Corolla, the report said.
Subsidiaries relating to Florafax, Gerald Stevens’ national wire service business, will not be included in the filing.
The floral products marketer and retailer sells its products through more than 300 U.S. retail locations and via its Internet site.
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