The filing was Franks' second in the last few years; the company previously reorganized in May 2002. Its latest was early last month, when the company said, "due to a general weakness in economic conditions, a steady decline in customer traffic and unfavorable weather patters causing a decline in all markets, the company has sustained significant losses from operations."

The locally-based company faced competition from home improvement chains such as The Home Depot and Lowe's, but at the same time, the stores, in 14 Midwest and East Coast states, had trouble competing with local upscale nurseries, said Gary Ruffing, a retail analyst at BBK Ltd.

"If you're a middle-of-the-road player and you can't define a niche, you're in trouble," he says. "And that's where they ended up."