Tuesday, June 4, 2019

FTD Files Chapter 11: Long, Complex Path Through SoCal's Tech Industry

In long, complicated path that wound through Southern California's high tech industry, flower delivery network operator FTD has filed for Chapter 11 bankruptcy. FTD also agreed to sell both its North American and Latin American businesses to private equity investor Nexus Capital Management, in a move that includes San Diego-based Proflowers. FTD was spun out from Woodland Hills-based United Online back in November of 2013, after a complex relationship with United Online--better known for running such companies as Classmates, NetZero, MyPoints, Juno, and StayFriends. FTD acquired San Diego's ProFlowers in 2014, paying $430M for the online flower and gift delivery service. United Online was acquired by B. Riley in 2016; United Online had acquired FTD back in 2008, as it looked to leverage a high stock price multiple to acquire FTD's steady revenue stream and diversify its revenues from the then declining dial-up Internet access business.