Teters Floral Products Inc. announced this week it is ceasing operations, effective immediately.
Most employees were laid off effective Monday, July 9, with only a small number of employees being retained to assist in the winding down of operations, a news release said.
According to management, Teters Floral Products “has had many issues to contend with over the past couple of years.” Issues cited in the release include declining sales and profit margins; transitions or changes in the leadership of the company; difficulties with execution of business plans, meeting sales targets and expense budgets; liquidity issues; and vendor and customer stress.
“These events collectively have caused a lack of confidence by lenders in management’s ability to return the company to profitability,” the release said. “Although supported by secured lenders and mezzanine lenders for some time, Teters lenders’ recently withdrew continued support for ongoing operations.”
The release said Teters had explored options to sell or to refinance the company as part of forbearance agreements with the current lender.
“Due to the lack of profitability, high seasonality of the business operations and severe liquidity issues, it has been a challenge to procure new lending relationships or offers for the purchase of the business as a going concern,” the release said. “A few weeks ago the company retained some further business advisors to assist with the process. Although some headway was being made with overhead reductions and cost structures, the company has run out of liquidity and time to pursue these paths.”
The release said “no purchase offers or alternative sources of capital are available to the company at this time.”