The drought has dug a deeper and drier hole for Pike Family Nurseries.
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PHIL SKINNER/AJC | ||
| According to its bankruptcy filing, Pike owes $5.6 million to at least 20 lawn and garden businesses across the Southeast, West and Midwest. | ||
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The 50-year-old Norcross-based company will be auctioned on Tuesday. Anything and everything owned by the garden retail and wholesale company is for sale.
Pike filed for Chapter 11 bankruptcy protection on Nov. 14, blaming Georgia's prolonged drought and watering restrictions. The company could still reorganize in bankruptcy if its creditors don't approve a sale at auction.
Pike stores will remain open through the auction process.
Wayne Juers, a vice president at Pike, said Friday the decision to go with an auction was not easy, but the continued drought made it hard to make another choice.
"Really, we have not had relief in the water situation," he said. "It did not make good sense to fight our way out and lose."
At least five companies have lined up to bid on the company's assets, said Pike's bankruptcy attorney, Rob Williamson, of the firm Scroggins & Williamson in Atlanta.
Williamson was not authorized to name the companies that have made bids for Pike.
He did say most bids are from companies that would use a Pike's acquisition to make a strategic play in Atlanta's nursery market. Private equity firms also have expressed interest, he said.
The sale comes as Pike, a private company, is about to start its spring season on March 1, Juers said. Dun & Bradstreet reports Pike had estimated sales of $68 million in 2007. Pike is held by Roark Capital Group, a private equity firm in Atlanta. A call to the company was not returned by deadline.
Pike has between 500 and 700 employees at its 15 stores and five gardening centers, Juers said. He said employees are obviously anxious because so much is unknown.
"As far as our employees are concerned, they are feeling good about it," he said. "But, I mean, it is a little nerve-wracking, but they are doing well."
The company also has retail locations in Birmingham, Ala., and Charlotte, N.C.
At one time, Pike had more than 20 Georgia stores, four exterior wholesale divisions, three stone and aquatic centers and the Pike Design Group.
The auction, which will not be open to the public, will take place at the law offices of King & Spalding in Midtown.
If Pike and its creditors agree to a sale, a federal bankruptcy judge will review the final offer at a Feb. 28 hearing, when the bid will be made public.
The point of the process, said Williamson, is to get the highest and best price for creditors.
According to its bankruptcy filing, Pike owes $5.6 million to at least 20 lawn and garden businesses across the Southeast, West and Midwest -- including Pennington Seed in Madison, Border Concepts in Charlotte and Gerson International in Kansas.
Pike secured $11.75 million in debtor-in-possession financing to fund its operations when it entered bankruptcy in November.
Neal Aronson, of Roark Capital, told the Atlanta Journal-Constitution in a Feb. 1, 2008 story, that Pike "isn't overleveraged; it doesn't have a lot of debt. It's just unfortunate that the drought was out of everybody's control."
-- Researcher Nisa Asokan contributed to this report.

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Comments
By Robert Golden
Mar 5, 2008 2:52 AM | Link to this
The Pike Family is to blame for the recent failure of the company.
The Home Depot and Lowes are home improvement centers, with gardening departments and they are NOT garden centers or retail nurseries. The ONLY reason they have a gardening department is to attract people to their stores. Why. They know that gardening is the number one outdoor activity. The Home Depot, Lowes, Wal-Mart, K-Mart, Sears, Target, and other national chain stores, use plants as a loss leader item to draw people into their store to purchase other item while purchasing plants. They price their plants at or even below their cost to attract customers. They do NOT care really what the plant look like, good or poor. If it fits the price point, it fits their needs. Pikes tried to fight the chains on price a long time BEFORE the Pike Family sold to Roark. Time proved that was stupid strategy. They needed to focus on a higher quality product, better customer service, education, and selection.
Pikes has never been regarded as a high quality garden center or retail nursery. Never. There are many better real garden centers in and around Atlanta to choose from. The real shame is that Green Brothers Nursery is no longer in business in Atlanta. In days gone by, that was THE garden center chain for real serious gardeners in Georgia. Do not cry for the Pike Family, their money is in the bank.
Robert Golden
By jmcclendon
Mar 1, 2008 9:15 AM | Link to this
I came across this article last night and it was one I had not seen yet.It was a strange article sounding as if every single item down the paper clips would be auctioned off. This article must have scared the daylights out of the employees as it too must have been the same one that sparked the spree of gift card usages. We now know that (god willing the judge lets the sale actually go through)better times are in store if you are a gardener or employee for the most part. There is on one half an outstanding garden center in Armstrong's taking over a great company and an outstanding group of people. On the other hand you have a sad situation of a divided wholesale exterior, interior and stone center lines of business which now looks like sliced pizza. Employees there seem lost even if only for the moment. I hope all can play out well for them.
Having said those things I must point out that I am a former employee of over 15 years that held many different leadership roles with the company. It was my love for the company and many who worked for, with of above me(not pay)that made me proud to be with that group. I must admit that even as happy as I am today with the awesome team I work for, I am jealous of and for the folks who will get to move on with Pikes under a new direction. I must also say that my first love for the company came as a 4 year old boy being pulled around in a little red wagon at Pike #2 in Marietta. My mom would let me get what ever I wanted to help her plant. We did that until I was in high school (not the riding in wagon part of course). So this means a lot to me.
What an outstanding company Atlanta and Charlotte gardeners and Pike retail employees are about to witness. I just can't wait to see those garden centers full again. I hope know that I can continue on saying I am a true life time customer.
Having said all of this please pray and think of those who may still not know there fate in wholesale, support center and esp. all of those at the Birmingham location.
By zebedee
Feb 26, 2008 11:06 PM | Link to this
Yes, Mr. Schnell's greatest achievement was having everyone change offices and taking down 50 years of history from the hallways so we could learn "to fight better" and forget our past. Deck chairs on the Titanic. I guarantee you if Mr. Pete Pike was still in charge, this would not have happened.
By zebedee
Feb 26, 2008 11:01 PM | Link to this
While I do not believe the bankruptcy to be the direct "fault" of their current CEO, it is crystal clear that Mr. Schnell's leadership was not too far removed from the analogy of "rearranging the deck chairs on the Titanic" and promoting disunity rather than a sense of team. That is why most of his senior team left within weeks of his arrival. Was the bankruptcy his "fault?" No. Could he have led or continue to lead this company to prosperity? No way. An auction may be the very best thing to revitalize this once great company.
By Chris
Feb 26, 2008 1:38 PM | Link to this
I can tell you if you need a great Nursery to find quality plants and sod. You need to visit Buck Jones Nursery in Woodstock, GA. They have great prices and their customer service can't be beat!!! So long Pikes and HELLO BUCK JONES!!!!
By Chris
Feb 26, 2008 1:38 PM | Link to this
I can tell you if you need a great Nursery to find quality plants and sod. You need to visit Buck Jones Nursery in Woodstock, GA. They have great prices and their customer service can't be beat!!! So long Pikes and HELLO BUCK JONES!!!!
By plantperson
Feb 26, 2008 12:52 PM | Link to this
Mayor Shirley Franklin has said "No watering allowed" so the future of Pikes and other businesses is still in jeapardy. As Atlanta continues to clear 50 acres of vegetation every day, we should be encouraged to plant MORE trees and plants instead of being banned from doing so. Governor Perdue said the drought was "man-made" in a speech he gave while on the shores of Lake Lanier, talking about how much water was released from the dam every day. What a shame that innocent businesses continue to be the sacrificial lamb to this political fiasco.
By E Ries
Feb 26, 2008 9:53 AM | Link to this
It's really sad that family and locally-owned businesses are suffering more and more, and Pike's is the lastest example. I'm new to GA, but the plants and materials I bought from them since arriving were always of good quality and the staff was helpful. Someone further up this thread mentioned how you can't even find anyone at Lowe's or Home Depot if you need assistance...isn't that the truth! With Pike's out of action, it'll be the big chain stores taking over everything else (puke, puke). I guess pretty soon, if things keep going like this, it'll be "Walmart Nurseries" nationwide...argh...!
By Chuck Uga
Feb 24, 2008 12:05 AM | Link to this
Home Depot and (to some degree) Lowe's sell plants that are root-bound. Some are nearly dead when they arrive at the stores. Pike's was never that much higher in price, and the staff always had knowledge of how best to plant them and grow them (heck, you can't even find an employee at Lowe's or Home Depot who has ANY knowledge). I guess I'll drive 30-40 miles outside the metro area to find a decent nursery now.
By employee 16
Feb 23, 2008 7:45 PM | Link to this
6:30 am get to work, turn on over head sprinklers. put money in the registers. open all gates. customers start entering parking lot. the rush of a spring saturday morning kicks in your a pike nursery store manager and the best gardeners in the state of georgia come in to buy the best plants available. I never did it for the money I did it because I believed in who I worked for and what I was selling. There will never be another Pike Family Nurseries. Thank all of the people who gave me a job and truley know what a real nursey can offer. May the horticultural gods bless us all.
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