Bankruptcy Debrief for the Week of May 28th


Color Sport Holdings files for chapter 11 with hopes of finding buyer with a green thumb

Live plant distributor and grower Color Spot filed for chapter 11 with the goal of selling substantially all of its assets as a going concern. The company proposed a timeline that would put a sale in July.

Color Spot cited market share and revenue that have been on the decline since 2014, hurt by a drought from 2011 to 2017 in California, where the company has a substantial portion of its nurseries, and  extreme weather events in Texas during 2015 and 2017.

Despite falling revenue—$248 million in 2017 versus $268 million the year prior—the company says it is well-positioned to succeed. Some of its long-term customers include Home Depot, Lowe’s, Costco, Target and Walmart as well as other retail stores, supermarkets and independent garden centers.

As of the filing, the company had a total of about $148 million of debt, which comprises $117.5 million of funded debt and $20.7 million of unsecured trade debt, among other things. More specifically, the $117.5 million of funded debt includes $83.4 million from a Wells Fargo credit agreement, $20.5 million from a Capital Farm Credit (CFC) credit agreement and $14.9 million loan from Black Diamond Commercial Finance.


Read CEO Paul W. Russo’s declaration in support of the first day motions.

View the chapter 11 petition.

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