Growers Top Pike’s List Of Creditors

Whenever there is a big Chapter 11 filing in the industry, one of the most unsettling aspects is the ripple effect that can hurt other companies. According to bankruptcy court records, Pike Nursery Holding LLC in Atlanta owes nearly $5.6 million to its 20 largest unsecured creditors. At least half of these companies are growers.

At the very top of the list is Monrovia in California, which is owed $716,779. Next is Wight Nurseries in Atlanta, Ga., which is owed $689,289.

On the greenhouse growing side, Wenke Greenhouse in Kalamazoo, Mich., and sister division Sunbelt Greenhouses in Douglas, Ga., are owed more than $500,000 for summer and fall crops. Owner Dennis Wenke says he met with officers of Pike last Monday before the bankruptcy filing, so he knew it was coming. Pike will be paying cash on delivery for poinsettias.

“As of now, I’m not concerned about our poinsettia crop,” Wenke says. “Only 20 percent will go to Pike’s. The rest are sold through fundraising groups.”

He adds that he is optimistic Pike’s can pull out of this. “They intend to keep going. Two or three of their board members have put their own money in,” Wenke says. “I’m very optimistic about Pike’s Nursery. Unfortunately, if it doesn’t start raining, it’s going to be a hard thing to pull out of.”

Although the financial setback is unpleasant for Wenke Greenhouses and Sunbelt, Wenke says the businesses will be able withstand it. “It’s unplesant for us. It does send shockwaves to our employees. We’ve assured them that nobody’s pay will be cut and we will be able to withstand this,” he says. “It won’t affect Michigan at all, but at Sunbelt, most of our sales are in the state of Georgia.”

In addition to Pike, Sunbelt is a primary supplier to Wal-Mart, Home Depot and Lowe’s. “We are primaries at 21 stores in Southeast Georgia, and there are no water bans there,” he explains. “There’s no way to predict what’s going to happen. Trying to predict what’s going to happen in the spring is where it gets difficult.”

Another regional grower on the list is Jim Snyder of Riverbend Nursery, with operations in Virginia and Georgia. Pike owes Riverbend about $157,000 for perennials and seasonal outdoor color items, like mums and ornamental cabbage.

Related to the prolonged drought, Snyder says, “We’ve been managing the best we can but sales are way off target. We’re hoping for rain. Gardeners will be happy to get outside once there is water in the ground. It’s just a matter of when.”

Riverbend also should be able to survive the financial setback, he says. “We’ll be able to withstand it. Will it cause some pain? Absolutely,” Snyder says. “As a grower, you’ve got to put money away for the rainy days, no pun intended. Not every year is going to be a great year. It’s difficult to do with gross margins being what they are in this industry. We wish Pike the best of luck getting back on their feet.”

Costa Farms in Florida is not on the list but has been a foliage supplier to Pike. “It goes without saying that we really understand their pain as we have also been drastically impacted by natural disasters in three major hurricanes in the last 20 years,” says Jose Costa, whose family owns Costa Farms. “We at Costa Farms know that the Pike family of garden centers is in a tough spot and we will be here for them when they return on both legs. There is not much Pikes Garden Centers can do in a situation like a drought except wait out the weather change, as the end consumer has no interest in buying a product like a live plant, if they cannot water it at their homes and businesses.”

Costa also observes a large shut down in demand for plants in the north Georgia/Atlanta area. “I hope and I am sure that the rest of our fellow friends in ornamental horticulture will help all of our friends in the business in this region who are undergoing this natural disaster business disruption,” he says.

Leave a Reply

More From Finance/Operations...
Gaillardia x grandiflora 'Arizona Apricot'

February 25, 2015

National Garden Bureau Designates 2015 As Year Of The Gaillardia

Gaillardia, also known as the blanket flower, is a member of the sunflower family (Asteraceae) and a long-blooming pollinator plant. It is fitting that the National Garden Bureau has specified 2015 as The Year of the Gaillardia.

Read More
IPPS Sharing Plant Production Knowledge Globally Logo

February 25, 2015

International Plant Propagators Western Region Sets Annual Meeting Date

The annual meet for the International Plant Propagators' Society (IPPS) Western Region has been set for this September. It will take place September 23 to 26 in Modesto, Calif., and will include learning sessions, tours to local nurseries, a research poster display and poster presentations, various networking opportunities and an awards banquet to close the event.

Read More
Evolvulus Blue My Mind

February 24, 2015

Blue Ribbon Bloomers For Greenhouse Production

Grow what consumers want! Surveys show that blue is one of the top preferred colors of today’s consumers. Here are twelve top recommended blue-flowering Proven Winners annuals and perennials to suit your spring production cycle.

Read More
Latest Stories
IPPS Sharing Plant Production Knowledge Globally Logo

February 25, 2015

International Plant Propagators Western Region Sets Ann…

The annual meet for the International Plant Propagators' Society (IPPS) Western Region has been set for this September. It will take place September 23 to 26 in Modesto, Calif., and will include learning sessions, tours to local nurseries, a research poster display and poster presentations, various networking opportunities and an awards banquet to close the event.

Read More
myers industries Lawn and Garden Logo

February 24, 2015

Myers Industries, Inc. Lawn And Garden Business Sold, N…

The management of Myers Lawn and Garden Group, along with Wingate Partners V, L.P. have recently acquired the Myers Industries, Inc. Lawn and Garden business. The new company is named The HC Companies, and will continue as a North American leading provider of horticulture containers supplying the greenhouse, nursery and retail markets.

Read More
american-hort-logo

February 17, 2015

AmericanHort Announces New Board Members

AmericanHort recently announced the election of new officers and members to the board of directors. Each will assume their positions on the board during Cultivate’15, July 11 to 14 in Columbus, Ohio.

Read More
All American Selections

February 17, 2015

All-America Selections Elects New Officers, Names New J…

While meeting during the Flower and Vegetable Seed Conference in Tampa, Fla., hosted by the American Seed Trade Association, All-America Selections elected new officers for a two-year term. Read on to learn about the new officers, as well as all of the new judges that were added in 2014.

Read More
Greenhouse Grower.com on your desktop, on your phone, on your tablet

February 11, 2015

GreenhouseGrower.com Relaunches With Responsive Design …

Greenhouse Grower magazine, the nation’s leader in profits, production and education for greenhouse growers, announces the launch of its completely redesigned website, GreenhouseGrower.com. The new design is the product of direct user feedback and GreenhouseGrower.com analytics, and includes responsive design for ease of mobile use.

Read More
Andy Higgins

February 3, 2015

MasterTag Names Andy Higgins As Its New President

Former CEO and president of Ecke Ranch, Andy Higgins, joins MasterTag as its new president. He brings more than two decades of industry experience to the position.

Read More
Syngenta Bioline Hires Ronald Valentin For Technical Lead Role

January 28, 2015

Syngenta Bioline Hires Ronald Valentin For Technical Le…

Ronald Valentin has been appointed technical lead for Syngenta Bioline, effective January 2015. He will be responsible for technical support of Bioline biological control agents and will be instrumental in helping growers develop integrated pest management (IPM) solutions.

Read More

January 27, 2015

Give Equal Time To The Number Crunchers

Before investing in a new business opportunity, check in with the financial gurus of your organization to make certain you have the cash flow to back up your efforts.

Read More
Plant Introductions, Inc. partners Mark Griffith, Dr. Michael Dirr and Jeff Beasley and Bailey Nurseries President Terri McEnaney.

January 20, 2015

Bailey Nurseries’ Purchase Of Plant Introductions Inc. …

When Bailey Nurseries purchased its long-time breeding partner, Plant Introductions, Inc. (PII), in early January 2015, it freed the PII team to concentrate on what they do best: develop new plants. Bailey Nurseries will take on the business management side of the partnership, but otherwise the relationship it has enjoyed with PII for years will be largely unchanged.

Read More
Plant Introductions, Inc. partners Mark Griffith, Dr. Michael Dirr and Jeff Beasley and Bailey Nurseries President Terri McEnaney.

January 13, 2015

Bailey Nurseries Acquires Plant Introductions

Bailey Nurseries has acquired Plant Introductions, Inc. (PII), effective January 1, 2015. PII has developed numerous innovative new varieties that have been marketed worldwide, many introduced by Bailey Nurseries.

Read More

January 7, 2015

How Inflation Affects Your Business And Why You Can’t I…

Awareness of the true increase in costs after inflation is a necessary part of good financial management for greenhouse operations.

Read More

December 4, 2014

New Developments In Shipping/Logistics Software

Improved shipping and logistics software from Picas Software and MapMechanics makes it easier for growers to plan loads efficiently and automate day-to-day distribution planning.

Read More
Fritz Dramm

December 2, 2014

Dramm Corporation Welcomes Back Fritz Dramm

Dramm Corp. recently welcomed Fritz Dramm as the new fertilizer production and compliance manager. Dramm previously worked at the company through high school and college, and is back after 20-plus years.

Read More
Sarah Harwood

November 24, 2014

Take Control Of Your Operation’s Succession Planning Pr…

Proper business and estate planning with your intentions clearly expressed can ensure your goals for the future of your business are fulfilled.

Read More

November 24, 2014

Succession Planning For Growers

Succession planning is a sensitive subject, but one that needs to be addressed when deciding on your operation's legacy. Greenhouse Grower caught up with two growers who shared their process and provided tips for a smooth transition.

Read More

November 24, 2014

BrightFarms Pioneers Hydroponic Greenhouses For Urban A…

BrightFarms brings fresh, local produce to underserved areas with hydroponic greenhouses located on neglected urban spaces.

Read More

November 10, 2014

NGB, AFE To Join In #GivingTuesday On December 2

The American Floral Endowment will participate in #GivingTuesday on December 2, a national movement to encourage charitable giving.

Read More

November 8, 2014

Amid Drought, Californians Talk Water

As extreme drought conditions continue, the state looks at how it manages its resources, while growers try to conserve and meet changing consumer needs.

Read More