Hines Horticulture Files For Bankruptcy

Hines Horticulture filed for bankruptcy, the company announced Wednesday, after listing debt of as much as $500 million and assets of less than $50,000 in Chapter 11 documents filed. The news is disappointing to us at Greenhouse Grower because Hines made strides over the last couple of years to set the company on the right course for the future.

Hines, which made the announcement in a press release, will continue with its current operations and is not going out of business. The company received a commitment for up to $62 million in debtor-in-possession (DIP) financing to keep business operating as usual.

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Hines has also agreed to the terms of an asset purchase agreement with Black Diamond Capital Management, which will serve as a lead bidder during the bankruptcy sale process.

“We intend to use the Chapter 11 process to reduce our debt, streamline our operations and take the steps necessary to ensure our long-term financial health,” CEO and President Jim Tennant said in a letter to his employees posted on one of our blogs. “Our goal is to preserve and strengthen our business so that we can compete successfully in the industry.”

Hines, which we featured in our April cover story, explored multiple restructuring alternatives with advisors over the last few months. It considered selling specific portions of the company’s operations and all of them, and the company’s board of directors determined that a Chapter 11 filing was the best way to maximize value for all stakeholders in the company.

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Tennant, who had served on Hines’ board of director for 10 years, had rebuilt the company’s executive team within the last couple of years. The future looked promising.

Jeffery Dunbar, who was in charge of business strategy for Wise Foods, the No. 2 potato chip producer in the United States, was recently named senior vice president of operations at Hines. Don Ray, now senior director of distribution and supply chain, worked with Dunbar at Wise Foods. Tom Batt, who was profiled in our June issue, was promoted to vice president of sales, marketing and business development. And John Krajanowski was tapped internally to lead several key projects and become senior director of planning and scheduling.

For more information on Hines Horticulture, click here.

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Avatar for Anonymous Anonymous says:

How can a company stating it has $ 500 million in debt, $ 50,000 in assets and a capital infusion of $ 62 million in funding survive? How does it pay its debt? I am thoroughly confused by the numbers.

Avatar for Anonymous Anonymous says:

I hope that this isnt a “sign of things to come for them… and others… Cant say that I am thrilled with the current economy….

Avatar for Anonymous Anonymous says:

If $50,000 in assets is not just a typo, then it is astonishing to what extent reality can be distorted within the legal framework of bankruptcy laws, at the expense of the creditors. What a crock!

Avatar for Anonymous Anonymous says:

Who in their right minds extended that much credit to a company with so few assets? Are those numbers true? Seems to me that the creditors need to take a good hard look at how they extend credit to companies. They are equally as responsible for this fiasco as is the leadership at Hines.

Avatar for Anonymous Anonymous says:

Bankruptcy laws today are a crock, they will end up making a good number of the poor unsuspecting creditiors pay for the sins and ineptness of the management and owners of the company, through the preference payment rules.

Avatar for Anonymous Anonymous says:

I wonder how much the leaderchip in Hines paid themselves the last while once they realized this was coming? They are probably well off at the expence of their vendors and creditors.

Avatar for Anonymous Anonymous says:

If black diamond purchases the companies assets valued at $50,000 does these mean that Black Diamond will sell the sites off one at a time to increase there profits? That looks like the plan so many employees of Hines will lose there jobs. Not Good!

Avatar for Anonymous Anonymous says:

Since Black Diamond will be buying the Assets of $50,000 of Hines which will make them the new stakeholders now I bet they will sell of each site to make major profits and put Hines employees at jeapordy to lose there job. I hope this does not happen but I feel for those employees.

The suppliers should not back up Hines and wait for the next time Hines claims the big sell.

Avatar for Anonymous Anonymous says:

I heard the VP of Ops and the CFO received a nice bonus in the first quarter. Nice of them to take care of themselves and forget the vendors and employees.

Avatar for Anonymous Anonymous says:

There is another aspect to this fiasco … what if you were a business competitor of Hines? You played by the rules and based you selling prices on your actual costs whereas Hines was effectively subsidized $500,000,000 in the same marketplace. How could you compete? So the creditors are but one loser as a result of Hines.

Avatar for Anonymous Anonymous says:

I have been away from the business for fifteen years. When you say Hines, I think of the Weyerhauser company. The one ranked in size with Monrovia. The one that I watched put in the huge state of the art facility in on Hwy 80 out of the bay area. The one with operations like that all over the country. Is this the same Hines, whats with the $50,000 in assets?

Avatar for Anonymous Anonymous says:

This is a mess that most everyone saw coming, especially us (another leading grower). We saw it first hand during the busy season when Hines laid off its drivers and they all came looking for work at our nurseries..so sad. I hope all of the employees are able to find work to provide for their families in these tough times.

Avatar for Anonymous Anonymous says:

Another case of a large hort venture getting a big head and way too big for their britches. All of the comments here are good ones. Look around at other large or quickly growing hort ventures. Look at their attitude and examine their business model. Too many ego maniacs in suits walking around the trade shows all these years.

Avatar for Anonymous Anonymous says:

I was a supplier to Hines. They owe me money. Doubt that I will ever see it. This hurts a small business like me.

$50K in assets? Something sounds fishy

Avatar for Anonymous Anonymous says:

Suppliers, creditors and the initial investors who purchased Hines from the family years ago are all to blame.

First of all, you cannot buy a business like this over priced and expect to get a great return on your investment. Our industry has never been able to do that. American Garden Products, Amfac, Weyerhauser, Purina etc. etc. they have all tried and failed. This is an owner operator business/industry.

Seconly, if all suppliers in our industry stuck to 30 net terms, growers would not be able to build the massive inventories/supply that our industry is suffering from. Less supply = higher prices = more profitability for everyone.

Only by creating stronger demand for our product are we going to be able to stick to our pricing. We blame the chainstore buyers but they are only buying what growers are willing to sell.

Who would agree to Vendor Mangaged Inventory selling if you had plenty of customers willing to buy your product outright?

Vendors and Creditors, tighten up and watch the industry improve. The strong will survive and thrive!

Avatar for Anonymous Anonymous says:

I am glad to have gone with Greenleaf as my plants supplier several years back.

They have consistantly provided me with top quality product at a good price.

The economy has had a slight effect on my business – but not nearly as drastic as it has to Hines… and yes, the 50k in assets is questionable !

Avatar for Anonymous Anonymous says:

Folks, you may want to get your facts from the actual bankruptcy filing rather than Greenhouse Grower magazine. The asset and liability figures were pulled from Hines Horticulture, NOT Hines Nurseries. The actual filing lists both assets and liablities of BETWEEN $100-500 million – big differance! Clearly Hines has much more in assets than 50 grand – also, they are clearly in trouble nonetheless.

Avatar for Anonymous Anonymous says:

I love the comment about 30 day terms.
And what other industry trips over itself reducing margins and trying to give products away?

Avatar for Anonymous Anonymous says:

Nice numbers here. I thought mine were mind-boggling at Etera till i read these at Hines. Good job guys!

Avatar for Anonymous Anonymous says:

“And what other industry trips over itself reducing margins and trying to give products away?”
That would be the “sell-it-or-smell-it” industries such as the farming and horticulture industry.

Avatar for Anonymous Anonymous says:

Nice humble attitude Loeb.

Avatar for Anonymous Anonymous says:

The CFO will lead them out. She is a legend. Pieropan is an expert and she will fix it. Believe me. She has integrity and is a worka holic.

Avatar for Anonymous Anonymous says:

People, research and get facts straight. Black Diamond buying Hines will actually be a good thing for the company. Once they have made the purchase hines will no longer be in bankruptcy and the company will turn around. It is now dec. 16 2008 and black diamond just made the purchase. All of us here at hines are really excited and are expecting to be seeing more money in the next few weeks. Black diamond is a major company with deep pockets and im pretty sure they know what they are doing. Obviously they see opportunity in buying hines.

Avatar for Anonymous Anonymous says:

The sale is done, and the sites will not be sold off. Black Diamond has had capital invested in Hines for awhile and is committed to making it profitable. Jeff Dunbar is gone as is Kenny Jenkins, the National HD manager. It will be interesting to see how many of those that took us down the wrong path will be gone, but we will be stronger as we hopefully learn from our false dreams of grandeur. Now Bordiers has filed bankruptcy, and our hearts go out to them as they seek a buyer. I fear they will have a much more difficult time. It seems that everyone who sleeps with Depot falls out of the bed.

Avatar for Anonymous Anonymous says:

Over the years Hines has purchased four large greenhouse operations in the north east. 2 in PA 1 in NY and 1 in NJ. They paid top dollar. Then after poor performance sold them for pennies on the dollar. This explains at least some of the diifernce in debt to assset numbers. It has also changed the competition in the area by allowing other large operations to expand there production by purchasing these facilities with very small cost inputs.

Avatar for Anonymous Anonymous says:

How can a company stating it has $ 500 million in debt, $ 50,000 in assets and a capital infusion of $ 62 million in funding survive? How does it pay its debt? I am thoroughly confused by the numbers.

Avatar for Anonymous Anonymous says:

I hope that this isnt a “sign of things to come for them… and others… Cant say that I am thrilled with the current economy….

Avatar for Anonymous Anonymous says:

If $50,000 in assets is not just a typo, then it is astonishing to what extent reality can be distorted within the legal framework of bankruptcy laws, at the expense of the creditors. What a crock!

Avatar for Anonymous Anonymous says:

Who in their right minds extended that much credit to a company with so few assets? Are those numbers true? Seems to me that the creditors need to take a good hard look at how they extend credit to companies. They are equally as responsible for this fiasco as is the leadership at Hines.

Avatar for Anonymous Anonymous says:

Bankruptcy laws today are a crock, they will end up making a good number of the poor unsuspecting creditiors pay for the sins and ineptness of the management and owners of the company, through the preference payment rules.

Avatar for Anonymous Anonymous says:

I wonder how much the leaderchip in Hines paid themselves the last while once they realized this was coming? They are probably well off at the expence of their vendors and creditors.

Avatar for Anonymous Anonymous says:

If black diamond purchases the companies assets valued at $50,000 does these mean that Black Diamond will sell the sites off one at a time to increase there profits? That looks like the plan so many employees of Hines will lose there jobs. Not Good!

Avatar for Anonymous Anonymous says:

Since Black Diamond will be buying the Assets of $50,000 of Hines which will make them the new stakeholders now I bet they will sell of each site to make major profits and put Hines employees at jeapordy to lose there job. I hope this does not happen but I feel for those employees.

The suppliers should not back up Hines and wait for the next time Hines claims the big sell.

Avatar for Anonymous Anonymous says:

I heard the VP of Ops and the CFO received a nice bonus in the first quarter. Nice of them to take care of themselves and forget the vendors and employees.

Avatar for Anonymous Anonymous says:

There is another aspect to this fiasco … what if you were a business competitor of Hines? You played by the rules and based you selling prices on your actual costs whereas Hines was effectively subsidized $500,000,000 in the same marketplace. How could you compete? So the creditors are but one loser as a result of Hines.

Avatar for Anonymous Anonymous says:

I have been away from the business for fifteen years. When you say Hines, I think of the Weyerhauser company. The one ranked in size with Monrovia. The one that I watched put in the huge state of the art facility in on Hwy 80 out of the bay area. The one with operations like that all over the country. Is this the same Hines, whats with the $50,000 in assets?

Avatar for Anonymous Anonymous says:

This is a mess that most everyone saw coming, especially us (another leading grower). We saw it first hand during the busy season when Hines laid off its drivers and they all came looking for work at our nurseries..so sad. I hope all of the employees are able to find work to provide for their families in these tough times.

Avatar for Anonymous Anonymous says:

Another case of a large hort venture getting a big head and way too big for their britches. All of the comments here are good ones. Look around at other large or quickly growing hort ventures. Look at their attitude and examine their business model. Too many ego maniacs in suits walking around the trade shows all these years.

Avatar for Anonymous Anonymous says:

I was a supplier to Hines. They owe me money. Doubt that I will ever see it. This hurts a small business like me.

$50K in assets? Something sounds fishy

Avatar for Anonymous Anonymous says:

Suppliers, creditors and the initial investors who purchased Hines from the family years ago are all to blame.

First of all, you cannot buy a business like this over priced and expect to get a great return on your investment. Our industry has never been able to do that. American Garden Products, Amfac, Weyerhauser, Purina etc. etc. they have all tried and failed. This is an owner operator business/industry.

Seconly, if all suppliers in our industry stuck to 30 net terms, growers would not be able to build the massive inventories/supply that our industry is suffering from. Less supply = higher prices = more profitability for everyone.

Only by creating stronger demand for our product are we going to be able to stick to our pricing. We blame the chainstore buyers but they are only buying what growers are willing to sell.

Who would agree to Vendor Mangaged Inventory selling if you had plenty of customers willing to buy your product outright?

Vendors and Creditors, tighten up and watch the industry improve. The strong will survive and thrive!

Avatar for Anonymous Anonymous says:

I am glad to have gone with Greenleaf as my plants supplier several years back.

They have consistantly provided me with top quality product at a good price.

The economy has had a slight effect on my business – but not nearly as drastic as it has to Hines… and yes, the 50k in assets is questionable !

Avatar for Anonymous Anonymous says:

Folks, you may want to get your facts from the actual bankruptcy filing rather than Greenhouse Grower magazine. The asset and liability figures were pulled from Hines Horticulture, NOT Hines Nurseries. The actual filing lists both assets and liablities of BETWEEN $100-500 million – big differance! Clearly Hines has much more in assets than 50 grand – also, they are clearly in trouble nonetheless.

Avatar for Anonymous Anonymous says:

I love the comment about 30 day terms.
And what other industry trips over itself reducing margins and trying to give products away?

Avatar for Anonymous Anonymous says:

Nice numbers here. I thought mine were mind-boggling at Etera till i read these at Hines. Good job guys!

Avatar for Anonymous Anonymous says:

“And what other industry trips over itself reducing margins and trying to give products away?”
That would be the “sell-it-or-smell-it” industries such as the farming and horticulture industry.

Avatar for Anonymous Anonymous says:

Nice humble attitude Loeb.

Avatar for Anonymous Anonymous says:

The CFO will lead them out. She is a legend. Pieropan is an expert and she will fix it. Believe me. She has integrity and is a worka holic.

Avatar for Anonymous Anonymous says:

People, research and get facts straight. Black Diamond buying Hines will actually be a good thing for the company. Once they have made the purchase hines will no longer be in bankruptcy and the company will turn around. It is now dec. 16 2008 and black diamond just made the purchase. All of us here at hines are really excited and are expecting to be seeing more money in the next few weeks. Black diamond is a major company with deep pockets and im pretty sure they know what they are doing. Obviously they see opportunity in buying hines.

Avatar for Anonymous Anonymous says:

The sale is done, and the sites will not be sold off. Black Diamond has had capital invested in Hines for awhile and is committed to making it profitable. Jeff Dunbar is gone as is Kenny Jenkins, the National HD manager. It will be interesting to see how many of those that took us down the wrong path will be gone, but we will be stronger as we hopefully learn from our false dreams of grandeur. Now Bordiers has filed bankruptcy, and our hearts go out to them as they seek a buyer. I fear they will have a much more difficult time. It seems that everyone who sleeps with Depot falls out of the bed.

Avatar for Anonymous Anonymous says:

Over the years Hines has purchased four large greenhouse operations in the north east. 2 in PA 1 in NY and 1 in NJ. They paid top dollar. Then after poor performance sold them for pennies on the dollar. This explains at least some of the diifernce in debt to assset numbers. It has also changed the competition in the area by allowing other large operations to expand there production by purchasing these facilities with very small cost inputs.