August 1, 2018

Color Spot files for bankruptcy protection

Temucula, Calif.-based Color Spot Holdings filed for Chapter 11 bankruptcy protection on May 29, 2018 in a Delaware court. The grower primarily produced annuals and woody plants, as well as some tropical patio plants. In the filing, the company states that after years of bad weather and sales losses, it needed to make a quick all-assets sale to deal with $147 million in debts.
In 2017, Color Spot attempted to deal with its financial problems by closing four of its 13 nurseries, laying off 30 per cent of its workforce, and attempting to sell its Texas-based Southwestern division. However, with $83 million in debt due early June 2018, the measures were not enough to prevent the bankruptcy.