Not Long After Opening a New Shelburne Store, Gardener's Supply Files For Bankruptcy
Burlington-based, employee-owned company intends to reorganize under Chapter 11, and seeks to sell.
Gardener's Supply Company, a pioneering, employee-owned business and a fixture in the Vermont retail landscape for over four decades, has filed for Chapter 11 bankruptcy protection. The company, which operates retail stores in Vermont, New Hampshire, and Massachusetts, as well as a robust national catalog and e-commerce business, submitted its filing in the U.S. Bankruptcy Court for the District of Delaware on Friday, June 20.
The Chapter 11 filing indicates that Gardener's Supply intends to reorganize and continue operating, rather than liquidate. The company is pursuing a sale of its assets, with a preliminary offer of $9 million from Gardens Alive, Inc., an Ohio-based direct-to-consumer gardening product seller. This initial bid, known as a "stalking horse" offer, sets the floor for other potential buyers who may wish to make a higher offer.
According to court filings, Gardener's Supply has assets valued between $1 million and $10 million, with liabilities in the range of $10 million to $50 million. The company has cited a confluence of factors leading to the bankruptcy, including challenging economic conditions, operational and fulfillment issues stemming from a new enterprise resource planning (ERP) system, and the financial pressures of its Employee Stock Ownership Plan (ESOP) repurchase obligations.
Founded in 1983 by Will Raap, Gardener's Supply Company has been a trailblazer in socially responsible business practices. The company became 100% employee-owned through its ESOP in 2009 and is a certified B Corporation, a designation that recognizes its commitment to social and environmental performance. Its mission has always been to promote gardening as a way to create a more sustainable and healthy world.
At present, there has been no official announcement from Gardener's Supply regarding the potential for store closures or layoffs as a result of the bankruptcy filing and proposed sale. The company's retail locations in Burlington and Williston, Vermont, as well as its stores in New Hampshire and Massachusetts, are currently operating as usual.
The bankruptcy filing and proposed sale mark a significant turning point for this iconic Vermont brand. The coming weeks will be crucial in determining the future of Gardener's Supply Company, its employees, and its long-standing presence in the gardening community.