Total Luxury Group Acquires Petals

Mar 12, 2008 4:14 AM  By

Apparel holding company Total Luxury Group announced Monday that it had acquired home decor products merchant Petals Decorative Accents for about $20 million.

Under the deal, Total Luxury Group bought 38 million shares of Petals’ common stock, valued at about $19 million, and 7,593,750 shares of Series C preferred stock, worth $1,012,500. Petals’ value on the Pink Sheets had fallen 76% between Dec. 1 and March 10.

Don Jones, chairman of Miami-based Total Luxury Group, will take over as Petals’ CEO. He is also CEO of International Apparel Group, which Total Luxury Group acquired in 2006.

Calls to Southridge Capital Management and Total Luxury Group were not returned. In a statement, Jones said he believes there are cross-marketing opportunities between the two groups that Total Luxury Group can take advantage of.

Petals sells silk flowers and home accents, while International Apparel Group manufactures and markets branded products under the Pony, Huk-A-Poo, Y Chrome, and Type-Y labels. The company has also had private label development programs with Converse and Randy Moss Clothing.

Petals had been owned by Ridgefield, CT-based Southridge Capital Management, since December 2003; the cataloger had filed for Chapter 7 bankruptcy protection in November 2003.

Southridge Capital Management subsidiary ImmunoTechnology Corp. acquired it via reverse acquisition in June 2006 for financial reporting purposes, according to a February 2007 10-Q filing.