Gardener’s Supply Company has filed for Chapter 11 bankruptcy protection amid a steep sales decline over the past years.
According to the filing obtained by Bondoro, the Chapter 11 process is intended to facilitate an orderly sale of substantially all assets under $363. Indiana-based Gardens Alive will serve as the $9 million stalking horse bidder following a prepetition marketing effort led by Tower Partners.
The company reports $1 million to $10 million in assets and $10 million to $50 million in liabilities. It cited liquidity constraints driven by adverse macro and microeconomic factors, revenue pressure, and ongoing ESOP repurchase obligations.
Founded in 1983 and headquartered in Vermont, Gardener’s Supply has six stores across Vermont, Massachusetts and New Hampshire.
The company told Daily Mail that sales have slumped since the pandemic gardening boom cooled off.
“Despite cost-cutting measures, the challenges posed by increased competition, rising shipping expenses, tariffs, and escalating marketing costs have proven insurmountable,” it added.
The firm plans to operate its stores as usual and retain all staff throughout the Chapter 11 process.
Last month, home furnishing store chain At Home filed for Chapter 11 to facilitate a restructuring process as it works to resolve its debt.