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...
Katherine Wolper

January 24, 2016

Ludvig Svensson Hires Katherine Wolper As West Coast Sales Manager

Wolper says she looks forward to listening to growers and understanding the concerns, obstacles, and opportunities they face.

Read More

January 20, 2016

Tips For Overcoming Challenges In Family Business From The Owners Of Costa Farms

Our industry is run by a collection of family businesses, and every one, no matter how big or small, has its share of management issues. But there are several differences between one that is run successfully as a business and one that allows family politics to distract from the organization’s goals. In this year’s State Of The Industry Survey, we noted that labor recruitment and succession are two areas where growers struggle. In talking with the owners of Costa Farms for this month’s cover story, I thought some of the values they have incorporated into the operation’s management structure really stood out as practices that other family businesses could use. The participatory management approach to business and team building is one that Tony Costa, the second-generation owner of Costa Farms, instilled in his children, Maria Costa-Smith and Jose Costa, and son-in-law, Joche Smith, the current owners of Costa Farms. In […]

Read More
I-9 Form

January 13, 2016

Proposed Changes To I-9 Form Important For Greenhouse Growers

AmericanHort’s Government Relations and Grassroots Representative Davi Bowen says growers need to become familiar with the new form and should be prepared to make comments if necessary.

Read More
Latest Stories
Katherine Wolper

January 24, 2016

Ludvig Svensson Hires Katherine Wolper As West Coast Sa…

Wolper says she looks forward to listening to growers and understanding the concerns, obstacles, and opportunities they face.

Read More

January 20, 2016

Tips For Overcoming Challenges In Family Business From …

Our industry is run by a collection of family businesses, and every one, no matter how big or small, has its share of management issues. But there are several differences between one that is run successfully as a business and one that allows family politics to distract from the organization’s goals. In this year’s State Of The Industry Survey, we noted that labor recruitment and succession are two areas where growers struggle. In talking with the owners of Costa Farms for this month’s cover story, I thought some of the values they have incorporated into the operation’s management structure really stood out as practices that other family businesses could use. The participatory management approach to business and team building is one that Tony Costa, the second-generation owner of Costa Farms, instilled in his children, Maria Costa-Smith and Jose Costa, and son-in-law, Joche Smith, the current owners of Costa Farms. In […]

Read More
I-9 Form

January 13, 2016

Proposed Changes To I-9 Form Important For Greenhouse G…

AmericanHort’s Government Relations and Grassroots Representative Davi Bowen says growers need to become familiar with the new form and should be prepared to make comments if necessary.

Read More

January 13, 2016

Wenke Greenhouses Buys Zylstra Greenhouses

Two Kalamazoo, MI-based greenhouses have merged after Wenke Greenhouses closed on Zylstra Greenhouses at the end of November. The additional property and facilities will allow Wenke Greenhouses to expand its young plant business, among other areas.

Read More

January 13, 2016

Costa Farms Wins With Its Emphasis On Team, Solutions, …

Based in Miami, FL, Costa Farms has gone global by focusing on strategy, systems, and vertical integration. See how the operation continues to expand through its emphasis on team, solutions, and growth.

Read More

January 11, 2016

New Transportation Funding Bill Is Good News For Floric…

According to AmericanHort, perhaps the biggest benefit of the new bill is what it doesn’t include: a proposed amendment that would have prohibited the use of federal funds for vegetative enhancements.

Read More

December 29, 2015

The Home Depot Says No To Neonics

The Home Depot plans to phase out neonicotinoids by 2018, according to a recent statement on the company’s website. The large home improvement retailer stated that its live goods suppliers have reduced the number of plants that they treat with neonicotinoids, and now more than 80% of all flowering plants sold at The Home Depot are not treated with neonicotinoids. The retailer said it will continue this decrease unless: Treatment is required by state or federal regulation, or Undisputed science proves that the use of neonicotinoids on live goods does not have a lethal or sub-lethal effect on pollinators Aside from these exceptions, the retailer has implemented a complete phase-out of neonicotinoid use on live goods by the end of 2018. Meanwhile, The Home Depot has required all of its live goods suppliers to label plants that have been treated with neonicotinoids. “The Home Depot is deeply engaged in understanding the […]

Read More
Gardeners of all ages enjoyed the annual plant sale at McCorkle Nurseries

December 22, 2015

Allan Armitage Explains Why People Will Always Want To …

We may believe that an appreciation for gardening and plants is rapidly draining away, but there is reason to hope.

Read More
Canadian Greenhouse Conference 2015

December 21, 2015

Presentations From Canadian Greenhouse Conference Avail…

Many of the talks that took place at this year’s Canadian Greenhouse Conference in Ontario focused on improving production efficiencies in the greenhouse.

Read More
Sanitation programs are essential to preventing and removing food safety concerns.

December 7, 2015

How The Finalized Produce Safety Rule Will Affect Green…

While the new rule from FDA has many exemptions that will likely apply to greenhouse growers, the reality is that buyers may still require strict adherence to food safety standards.

Read More
Smith Gardens Marysville outdoor field production

November 30, 2015

Why Smith Gardens’ Marysville, WA, Facility Is A Great …

Labor rates in Washington State are some of the highest in the nation, making competition for labor fierce. This is why Smith Gardens in Marysville, WA, wants to strengthen its reputation as a great place to work.

Read More
Great Lakes Expo

November 30, 2015

6 Reasons You Should Attend The Michigan Greenhouse Gro…

The Michigan Greenhouse Growers Expo, held Dec. 8-10 in conjunction with the Great Lakes Fruit, Vegetable and Farm Market Expo, will feature an expansive trade show and several educational sessions aimed at greenhouse growers.

Read More

November 25, 2015

Everything You Need To Know About the New England GROWS…

Held In Boston December 2-4, New England GROWS includes a comprehensive conference program, a trade show, and with six special programs that teach new skills and provide opportunities to network with colleagues.

Read More

November 20, 2015

Lessons Learned From The California Drought

For those of us who live in the areas of the country that experienced harsh winters and significant rain over the past three seasons, water has become a nuisance in some cases, rather than a blessing. I can’t count the number of times I have wished to be able to send the snow or the rain to the West Coast, tied up with a big red bow. But think about how we’d feel if we didn’t have the snow and the rain, and we were experiencing the same dry conditions that the residents of California, Oregon and Washington have. With fresh water supplies dwindling in regions of the world, and the resistance of residents in states like Michigan to share water from the Great Lakes, it’s likely that the next civil or world war could be fought over our most precious resource. California’s epic drought should cause everyone to look […]

Read More
Jill Calabro

November 3, 2015

AmericanHort Names New Research And Science Programs Di…

Jill Calabro will bring strategic direction and oversight to research funding by the Horticultural Research Institute, the research affiliate of AmericanHort.

Read More
SBI’s ANY Device Application allows growers to quickly determine availability-featuer

November 2, 2015

SBI Software’s Solutions Help Simplify Logistics For G…

The company focuses on helping growers improve their existing processes with solutions for site fulfillment, replenishment, inventory management and more.

Read More
Griffin Expo15 seminar

October 28, 2015

Griffin’s Hits Record Attendance With 2015 Expos,…

Griffin Greenhouse Supplies set new attendance records with its 2015 Expos. Its 2016 Expos are set for August 31 and September 1, 2016, in West Springfield, Mass., and September 21-22, 2016, in Lancaster, Penn.

Read More

October 28, 2015

Possum Run Greenhouses Taken Over By New Owners

Justin and Lynn Marotta have placed Possum Run Greenhouse and Gifts into the hands of new owners. John and Caroline Bletner, a newly married couple, took over the Bellville, Ohio, property October 2, according to an October 24 article in the Mansfield News Journal. The Marotta family has run Possum Run Greenhouse and Gifts for 41 years. When the Marottas announced in April the greenhouse operation was for sale, they said they were looking for an energetic couple to take the business to the next level, which is what they found in the Bletners, the article reports. The Bletners have hinted they’ll be “opening to a larger market” and that the retail side will “look different.” They’ll hold a grand re-opening the week of April 22, 2016. Staff are staying on board and the Bletners are maintaining many of the suppliers. The 200-plus varieties of fuchsias Justin brought to the greenhouse […]

Read More
[gravityform id="35" title="false" description="false"]