Florist News: March 2007 Archives
FTD recently filed an S-3 with the SEC to describe the proposed sale of approximately 6.6 million shares by Leonard Green & Partners and executives and board members of FTD.
After announcing they were actively looking for a buyer in November, and failing to find an investor group willing to purchase FTD outright, the major shareholder and executive team are selling off a large portion of their holdings - at an expense of about $700K to be paid by FTD.
Readers will note that FTD's executive team including Mike Soenen, Jon Burney, Larry Johnson, George Kanganis, and Bill VanCleave indicate intent to sell approximately 50% of their personally held shares.
Florists digging into the details of the S-3 note the sentence "It also allows our consumer businesses to process peak order flow substantially above that of our average daily order flow without any meaningful incremental investment in systems or infrastructure" as being possibly related to the infrastructure failure during Valentine's Day that lost thousands and thousands of consumer and florist orders.
An article on Newsvine, Flowers Not So Rosy at FTD asks
If everything is so rosey then, why is over $120 million of this company being sold by its leadership?
When the leadership group of FTD wants out, why would an investor want in?
Big changes coming, or just a chance to take a profit?
Good questions.
