BFG Supply Officially Files for Chapter 11 Bankruptcy Protection

BFG Supply and its affiliates officially filed for Chapter 11 protection on Aug. 18 in the U.S. Bankruptcy Court for the District of Delaware.

According to a report on Bondoro.com, which offers alerts and comprehensive summaries of Chapter 11 bankruptcy cases, the company attributes the filing “not to a single event but to more than two years of compounding operational, financial, and liquidity deterioration spanning fiscal years 2024 through 2026. A series of debt-financed acquisitions — Greenhouse Megastore in December 2021, a portion of the wholesale distribution business of Central Garden & Pet Company in July 2023, and the distribution business of V-G Supply Co. approximately one year later — were never fully integrated, leaving duplicative facilities, legacy operating and technology systems, an elevated cost structure relative to a shrinking revenue base, and unrealized synergies that limited the Debtors’ capacity to service the indebtedness incurred to fund the transactions. Compounding the cost problem, turnover within the sales organization during fiscal year 2026 drove significant customer attrition as departing representatives took longstanding relationships with them. Consolidated revenue, after rising from approximately $573.7 million in fiscal year 2024 to approximately $581.5 million in fiscal year 2025, fell to approximately $536.5 million in fiscal year 2026 — a decline of roughly $45 million, or nearly 8%, year over year.”

Over more than five decades, BFG Supply evolved from a regional horticultural supplier into a diversified distributor of lawn and garden products, greenhouse supplies, nursery products, controlled-environment agriculture products, greenhouse structures, and related horticultural equipment.

Through a combination of organic growth and strategic acquisitions, BFG assembled an integrated business-to-business platform that connects a highly fragmented supplier base with thousands of commercial customers across the United States and Canada.

Complementing the distribution platform was a group of specialized businesses spanning greenhouse manufacturing, greenhouse construction, installation services, and related horticultural support operations. These offerings broadened BFG’s customer relationships and allowed the company to deliver solutions beyond traditional product distribution, with many customers purchasing across multiple product categories and service lines.

BFG’s customer base is diversified, comprising independent garden centers, regional greenhouse operators, commercial nursery businesses, hydroponic retailers, commercial cultivators, greenhouse contractors, and other professional participants in the horticultural supply chain. Because these customer groups are highly fragmented, the company’s nationwide purchasing capabilities, distribution network, and technical sales organization generate efficiencies for suppliers and customers alike.

As of the Chapter 11 petition date, BFG maintains relationships with approximately 1,100 active suppliers and offers more than 100,000 stock-keeping units, positioning the company as an important distribution channel for many manufacturers serving the green industry. It processes approximately 270,000 customer orders annually, delivered to approximately 15,000 ship-to locations on behalf of approximately 11,000 commercial customers.

Alongside its core wholesale distribution operations, BFG owns and operates several specialty businesses:

• De Cloet Greenhouse Mfg. Ltd.: Manufacturer of greenhouse structures and related components.
• Green-Tek, LLC: Manufacturer of greenhouse coverings and related products.
• International Greenhouse Contractors, LLC and subsidiaries: Providers of greenhouse construction and horticultural services.
• GROSouth, Inc. and L&L Nursery Supply, Inc.: Regional distribution businesses.
• Greenhouse Megastore: eCommerce platform serving direct-to-customer and online sales channels for greenhouse products and horticultural supplies.

Watch for more updates on GreenhouseGrower.com.