International Garden Products Inc. announced Monday that the company and four of its subsidiaries — including Iseli Nursery Inc. and Weeks Wholesale Rose Grower of California – have filed for Chapter 11 bankruptcy protection. This type of bankruptcy allows the companies to continue operating under the supervision of bankruptcy court, while going through the reorganization process. From their announcement:
IGP noted that Chapter 11 protection should enable it to conduct operations in the ordinary course. To that end, the company is seeking approval from the court for a variety of First Day Motions, including requests to make wage and salary payments and other benefits to employees and agents. The motions are typical in Chapter 11 filings. The company intends to pay providers of goods and services delivered post-petition in the ordinary course of business.
The company also emphasized that it does not anticipate an interruption in services, and that customers will continue to have the same contacts at both Iseli and Weeks and can place, with confidence, their orders for the spring 2011 season.
IGP stated in its announcement that it expects the process to proceed smoothly, but that it cannot speculate on when the company may emerge from bankruptcy.
