The largest unsecured creditor of bankrupt Irvine-based Hines Horticulture Inc. is buying the seller of plants and shrubs.
Black Diamond Capital Management LLC, a hedge fund and private equity firm based in Illinois, has received bankruptcy court approval to acquire Hines.
Hines filed for bankruptcy in August, blaming the economic and housing downturn, high costs for materials and fuel, poor weather and pressure for lower prices from customers.
The company 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.
At the time of Hines’ filing, the company struck a deal with Black Diamond to serve as a possible buyer of the company’s assets.
Investment funds managed by Black Diamond are Hines’ largest unsecured creditors.
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.
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.
