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Thursday, Mar 28, 2024
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Plant Grower Hines Files for Bankruptcy

Irvine-based Hines Horticulture Inc., a seller of plants and shrubs through home improvement stores, has filed for bankruptcy protection and plans to sell off its operations.

The move comes after Hines and its advisers looked to selling all or part of the company and raising money in recent months.

“The company’s board of directors determined that a chapter 11 filing was a necessary and prudent step and the best way to maximize value for all stakeholders in the company,” Hines said in a statement.

Hines sells shrubs, flowers and container-grown plants to stores such as Wal-Mart, Home Depot and Lowe’s. It also produces peat moss for greenhouses, nursery growers and golf course developers.

The company blamed its bankruptcy filing on the economic and housing downturn, high costs for materials and fuel, poor weather and pressure for lower prices from customers.

Hines hasn’t reported quarterly results since November.

At that time, the company had quarterly sales of $32 million, down 11% from a year earlier. The company lost $7.7 million, down from a loss of $30 million a year earlier.

Its shares trade on the low-profile Pink Sheets exchange with a market value of about $1.5 million. Hines’ shares were down about 35% on Thursday.

Founded in 1920, Hines was acquired by Weyerhaeuser Co. in 1976 and then sold to a private investment group.

The company’s 1998 public offering generated $56 million. Hines then went on a buying spree, purchasing nursery operations across the country.

It now runs seven nurseries. It operates in four states, including one in Irvine.

Hines has struck a deal with Black Diamond Capital Management LLC of Illinois to serve as a stalking horse bidder and possible buyer of the company’s assets.

Stalking horse bidders are selected by bankrupt companies to make an initial, opening bid on assets and ward off lowball offers. Other potential buyers could counter with offers higher than that of the stalking horse bidder.

Investment funds managed by Black Diamond are Hines’ largest unsecured creditors.

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