FTD has filed for bankruptcy protection as it prepares to sell off pieces of the company and deal with its debt.
The company filed for Chapter 11 protection in U.S. Bankruptcy Court for the District of Delaware on Monday but emphasized that customers will continue being able to order and receive flower bouquets, boxes of sweets and other gifts despite the restructuring.
“The important actions we are taking today are designed to enable us to continue supporting our network of florists and business partners and serving consumers while we work to complete the initiatives coming out of our strategic review,” Scott Levin, FTD’s President and CEO said in a statement.
An affiliate of Nexus Captial, a private equity firm, has made a deal with FTD to buy its flower delivery business based in North America and Latin America for $95 million. The sale would require a green light from the bankruptcy court and could be quashed if another bidder comes to the table with a stronger offer.
Additionally, FTD also has a non-binding offer from a company owned by the founder of Edible Arrangements to buy the candy delivery business, Shari’s Berries, as well as another “letter of intent” for the FTD entity, Personal Creations.
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“We believe that our extensive discussions with multiple parties will enable us to achieve an outcome that benefits not only our creditors, but also our employees, florists, customers and partners,” Levin said.