Nurserymen's Exchange Files For Bankruptcy

A voluntary petition under Chapter 11 bankruptcy filed by Half Moon Bay's Nurserymen's Exchange, Inc. will be heard this morning in a San Francisco courtroom.

Judge Dennis Montali will hear the petition at 11am in the Northern District of California Bankruptcy Court.

Nurserymen's Exchange on Monday announced the petition, and the sale of 28 acres of its land, in an effort to restructure the company. According to Jack Pearlstein, CEO of Nurserymen's, "The past few years have been extremely challenging for everyone in the nursery industry as declines in disposable income translated into reduced consumer purchasing.”

Nurserymen's Exchange is a large wholesaler of indoor potted blooming plants, specialty foliage, and edible plants.  Their product is marketed in the U.S. under the name of BloomRite.

According to a press release issued by the company, the sale of the 28 acres to a Bay Area buyer will bring $8 million to the company as a means to pay down debt.

The company says its offices and greenhouses will remain open during the bankruptcy proceedings.

Nurserymen's Exchange laid off over 100 of its 300 workers less than a year ago as it made internal changes. At the time, according to Greenhouse Management Online, NEI was Half Moon Bay's 3rd largest employer.

NEI was subject to a certification attempt by the United Farm Workers, including an election last year. The end result of that election is still pending before the State Agricultural Labor Relations Board.

Included in documents to be viewed by the court this morning is a list of creditors holding $9,472,945 in unsecured claims against NEI.

They include:

• $1,500,000 (est) Technical Traffic Consultants, Congers, NY
• $1,154,000 AB Bonsai & Pottery, City of Industry, CA
• $195,022 Select Personnel Services, South San Francisco, CA
• $108,875 International Freight Service, Burlingame, CA

Among secured claims, NEI in 2008 borrowed $15,300,000 from Wells Fargo Bank to pay off debt.