Real Estate Sheddings and Sales of Other Commercial Assets Save Gerald Stevens Inc.

FORT LAUDERDALE, FL-Financially-fading retailer Gerald Stevens Inc. is operating on borrowed time, but at least the country’s largest flower store chain is still in business, company officers argue.

The company’s strategy in selling $7 million worth of non-core assets is keeping it alive. The sale comprised four real estate properties, a credit card clearing house and an Internet business for florists. The company’s fiscal problems are attributed to a speedy expansion program that saw Gerald Stevens acquire 300 national flower shops in 18 months.

Bank of America is giving the locally-based retailer a new $7-million line of credit through February and, along with other lenders, is extending total debt payments of $16 million to June 2002 from February and May 2001. Top company managers also are loaning the company $1 million in working capital. Gerald Stevens’ management team includes Steve Berrard and Gerald Geddis, former executives at Blockbuster Entertainment.