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Harry & David struggles after weak holiday sales

Wed Feb 9, 2011 8:57 AM EST
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Associated Press
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MEDFORD — Harry & David Holdings Inc. is struggling to stay afloat after a weak holiday season caused it to miss some loan requirements.

The company, which sells gift baskets filled with meat, cheese and fruit, reported in January that revenue during the key holiday quarter fell nearly 2 percent to $262 million. That caused it to miss some requirements of its revolving credit facility, and it could have trouble paying bills unless the loan's requirements are changed or waived.

In January, the company hired Rothschild Inc. and Jones Day as advisers to explore recapitalization alternatives

That effort continues, but Tuesday in an SEC filing the company said if those efforts prove unsuccessful there is doubt of its ability to continue as a "going concern," implying a possible bankruptcy protection filing.

© 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Roscoe B

Well, as far as I am concerned, their products are so grossly overpriced, who can afford to buy it? Harry and David, the economy is bad for the working guy and they are the ones that buy your product. Maybe it is time to lower the price. No sympathy here.

    Reply#1 - Wed Feb 9, 2011 9:40 AM EST
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