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.
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.
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.