Court Approves Sale of F&G’s Fulfillment Business

Wilmington, DE—CATALOG AGE has learned that the U.S. Bankruptcy Court for the District of Delaware approved the sale of Stark Bros. Fulfillment Services Co., a division of now-defunct Foster & Gallagher (F&G), to Lexton Group. Former Stark Bros. vice president Jack Alexander is president of Lexton. Terms of the deal, which was approved Aug. 27, were not disclosed.

On Sept. 19, the bankruptcy court approved the sale of substantially all the assets of F&G’s gifts business, including the Walter Drake catalog, to San Francisco-based Brecon Capital; Lawrenceburg, IN-based Gardens Alive won approval to buy F&G’s horticultural division. Both deals are expected to formally close in early October and include most of the real estate, intellectual property, equipment, and inventory.

According to F&G spokesperson Doug Morris, all that’s left of F&G to be liquidated is the corporate real estate, such as offices and call centers. It is unknown when the court will decide on the fate of those properties.

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Court Approves Sale of F&G’s Gifts Group, Horticultural Books

Wilmington, DE—The waiting is over, and Brecon Capital Management and Gardens Alive are the lucky bargain shoppers. On Sept. 19, the U.S. Bankruptcy Court for the District of Delaware approved the sale of substantially all the assets of the gifts business of Foster & Gallagher (F&G) to Brecon; Gardens Alive won approval to buy the horticultural division of the now-defunct mailer. Both deals are expected to formally close in early October and include most of the real estate, intellectual property, equipment, and inventory.

San Francisco-based equity management firm Brecon bought the $50 million gifts division, which includes the Walter Drake and Home Marketplace titles, for $15 million. Unlike F&G’s other titles, the gifts group has remained fully operational since the parent company filed for Chapter 11 bankruptcy protection on July 2.

Gardens Alive, a Lawrenceburg, IN-based cataloger, agreed to buy F&G’s horticultural business, which includes the Breck’s, Gurney Seeds, Henry Field’s, Michigan Bulb, Spring Hill Nurseries, and Stark Bros. catalogs, for $10.75 million. It plans to restart the catalogs, which were suspended at the time of the Chapter 11 filing, under their original names. According to an F&G Website, last year the horticultural group (excluding the troubled sweepstakes portion of the business) generated more than $130 million in sales and EBITDA of more than $5 million.

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