4 bidders to divide up Pike Nurseries assets

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UPDATED: 7:37 p.m. February 27, 2008
4 bidders to divide up Pike Nurseries assets
Bankruptcy judge still must approve deals

By RACHEL TOBIN RAMOS
The Atlanta Journal-Constitution
Published on: 02/27/08

Pike Family Nurseries has received four bids totaling $7.9 million for its assets, including one from Gary Pike, the son of the founder of the iconic garden chain, William "Pete" Pike.

One bidder, California-based Armstrong Garden Centers, wants the rights to the Pike name, which could jump-start its entry into the Southeast.

Andy Sharp/AJC

(ENLARGE)

The 15 Atlanta area stores will remain open during the auction.

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The bids, if approved by a federal bankrutpcy judge in Atlanta on Thursday, would divvy up the company, splitting its wholesale and retail divisions, and dice up the retail locations.

The auction went late into Tuesday night at the Midtown law offices of King & Spalding. So far, according to a document filed with the bankruptcy court, the auction yielded these bids:

• Armstrong bid nearly $5.2 million for a store in Charlotte and to use the "Pike Nursery" name, plus other retail locations and inventory assets.

• Geo. Schofield Co. bid $1.2 million for one store and the "hardscape inventory" of two other stores.

• Skinner Nurseries bid $1 million for the inventory of two Pike stores.

• And Gary Pike bid $490,000 for the assets of two Pike stores.

The fate of other retail locations has not been disclosed.

Pike Family Nurseries filed for bankruptcy in November, in part blaming Georgia's drought for lagging sales.

The company decided to pursue the auction this month. The company is no longer owned by the Pike family but is held by Roark Capital Group. The 15 Atlanta area stores will remain open during the auction.

Several creditors have objected to the bids, including Bank of America and PNC Bank. The latter complained in its court filing that the amounts offered didn't reflect the value of store leases and inventory.

For example, the bank says the inventory Gary Pike wants to buy for $490,000 is really worth $863,221.

Also, the bank claims that if all the bids are accepted, it has no assurance it will be paid for $2 million in accounts receivable and $700,000 for inventory at a Birmingham store.

The bankruptcy judge, Mary Grace Diehl, will have to decide if the bids have fallen short or didn't follow procedure, said bankruptcy attorney John A. Christy with Schreeder Wheeler & Flint in Atlanta, who is not involved in the case.

Aside from that, however, the judge could be hard-pressed to throw out the bids if unsecured creditors have given them the thumbs up, Christy said.

"I've got to believe that it's tough to sell a nursery in a drought," Christy said. And don't forget the housing market, he said.

Still, he said, buying an established Atlanta brand name like Pike is worth a lot. "It's a known quantity," he said. "Everybody knows Pike's here."

-- Researcher Nisa Asokan contributed to this article.

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Comments

By Moe Baker

Mar 7, 2008 2:40 AM | Link to this

Bryan:

Well, at least you knew before Christmas. They could have waited until after the holiday and let you spent what money you had left. I would want to know before than after. There is never a good time to loose your job.

Pikes new ownership and the Pike Family made many odd business decisions. Many of us in the business (professional) viewed many of their moves as� less than smart. I have been totally amazed at how many people making comments often compare Pikes to The Home Depot and Lowes. Pikes was and is a Retail Nursery and NOT a home center or true Garden Center. That was one of Pikes problems � poor image.

I know the folks at Armstrong Garden Centers and I question their purchasing of Pikes in North Carolina at this time. The smart move would be to wait until after spring has come and gone. The Southeast has not received near enough rain this winter and spring forecast is� dry. Plus, Pikes is going nowhere. Only time will tell.

Good luck to you Bryan. I can be reached at bakerlover@hotmail.com.

Moe Baker

By Bryan

Mar 6, 2008 12:40 PM | Link to this

Having been an employee for Pikes this last year, I noticed some odd choices for a company that was in the midst of a severe drought. Pike's decides to build and open up a new store down off Piedmont and do the installation in the month of August! Pretty poor planning in my opinion. Seeing first hand the amount of waste coming thru corporate I knew once they filed for bankruptsy my days would be numbered. Had I known that I would get laid off a week prior to Christmas shows the class this company has been lacking! You reap what you sow.

By Bryan

Mar 6, 2008 12:40 PM | Link to this

By Robert Golden

Mar 5, 2008 2:45 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 David Cree

Mar 4, 2008 10:49 PM | Link to this

I am both a Master Gardener and a Georgia Certified Landscape Professional. I have done business with Pike Nurseries for over 30 years with both the retail and wholesale divisions.

I truly hope that Armstrong can infuse in the old Pike's, a blend of superior quality plants , friendly knowledgeable staff, and uncompromising CUSTOMER SERVICE .

As a corporate mantra, this blend would prove to be their formula for success in this ever challenging marketplace.

With my best wishes for a successful tomorrow.

By Matt

Mar 2, 2008 7:41 AM | Link to this

Next to go: HOME DEPOT...

By ALAN

Feb 29, 2008 1:17 PM | Link to this

You have to go home with the one you take to the dance. Looks like Pike didn't know this, or just didn't do it.

By Intrepid

Feb 28, 2008 3:53 PM | Link to this

Folks if you are looking for a great variety of plants, attentive service, and a company that actually cares about you as a customer take a look at Habersham Gardens over on Cheshire Bridge. They are reopening on March 1 and will be having their spring customer appreciation party later in the month. It's sad that Pike's lost their vision. Habersham is locally owned and operated and still has that Mom and Pop feel that you used to love about Pikes. If you are serious about gardening check out Habersham. Buy yourself some rain barrels because Shirley Franklin may not let us water this summer if the drought continues.

By potman

Feb 28, 2008 2:52 PM | Link to this

like too many companies today, instead of concentrating on what made them, plants, planters, and service ,pikes wanted to be the home depot of the garden world and carry everything. they lost their focus and people went else where for what they really needed, plants and growing materials, not furniture, and cooking/grilling stuff. (aka Home depot)

By MasterGardener

Feb 28, 2008 2:45 PM | Link to this

As a serious gardener, I look for quality and unusual plants.

The big boxes will never be able to offer 2008 introductions, native or xeriscaping plants. Yes... these plants may be a little more expensive, but they're worth it... and a good investment, lasting from year to year!

To get the quality and selection I need, I drive 30 miles to Hastings. They've lasted while others have failed because they sell quality, have phenomenal service, and know what they're talking about!

Have you ever tried to get an answer to a question, or even find someone to ask a question about plants at a big box store?

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