Flower and gift delivery service FTD could go out of business or shrink its operations this summer if it doesn’t find a buyer or raise money by June 1, the company said Monday.
Last week, the Chicago-based company revised a credit agreement that required it to, among other things, pay back $217.7 million in debt due Sept. 19, 2019.
In a regulatory filing made Monday, FTD said it expects to have the funds necessary to remain afloat into July, but not beyond then.
Last year, FTD began restructuring and reviewing strategic alternatives, including a possible sale or merger.
In the filing, the company warned that it may not be able to fulfill these obligations.
“Our plans to alleviate the substantial doubt about our ability to continue as a going concern may not be successful and we may be forced to limit our business activities or be unable to continue as a going concern, which would have a material adverse effect on our results of operations and financial condition,” the company said in the filing.
The floral delivery company, established in 1910, acquired online florist ProFlowers and its sister brands Shari’s Berries and Personal Creations for $430 million in 2014.
But it has struggled recently in the face of competition from startups offering flower arrangements at lower prices. Last year, total sales across all of FTD’s businesses fell 6 percent to $1.01 billion.
The company lost $224.7 million last year, compared with $234 million in 2017.
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