In a move to offset its deteriorating financial situation, the Fort Lauderdale-based company negotiated about $4 million in sale-leaseback contracts during the fiscal period that closed Aug. 31, 2000.
The company's annual reports show the firm lost $60 million since 1998. Its stock price has fallen to nine cents per share from $25 per share last year.
The company's assets, liabilities and number of creditors were not listed in the initial petition filing in U.S. Bankruptcy Court in Miami on Monday. The firm lost 48 cents per share on revenue of $49 million in the first quarter versus a lost of 53 cents per share on sales of $58 million in last year's comparable period.
Gerald Stevens posted a fiscal 2000 loss of $4.57 per share on revenue of $252 million compared to a loss of $1.75 per share on sales of $102 million in fiscal 1999, according to the company's filings with the Securities and Exchange commission.
Besides its 300 retail stores, the company also operates call center operations in Medford, OR; Vero Beach, FL; Tulsa, OK; and San Francisco. It also operates an import facility in Miami.
In a prepared statement, Gerald Stevens officials say they plan to sell some of their locations and consolidate others while continuing to operate the business during the reorganization period.
The company blamed its financial problems on a weakened consumer market and the negative impact caused by the decision at Miami-based U.S.A Floral Products Inc., a Miami-based floral importer, to reorganize as a Chapter 11 company.
Still, the Fort Lauderdale company remains optimistic it will exit bankruptcy as a stronger company. The company has secured a $7 million line of credit through Bank of America to help pay cash requirements, subject to court approval.
In addition, the company is seeking permission to grant preferential terms to essential vendors to ensure a continuation of operations, especially through Mother's Day in May, an important revenue producer for the floral industry.
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