In Letter to Customers, Monrovia Discloses Financial Pressures
After a slow start to spring bookings, banks have expressed concern and given Monrovia until Jan. 31 to show considerable improvement or risk facing a liquidation of its inventories.
In a letter to its customers last week, Monrovia executives revealed current financial struggles — particularly poor 2011 bookings figures. Lenders to Monrovia have given the growing operation until Jan. 31, 2011, to raise its spring bookings by $20 million or it will risk facing a liquidation of its inventories.
Monrovia will provide its customers with a significant list of discounted plants — hundreds of varieties will be reduced by 35 to 50 percent off.
Monrovia's lenders have also advised the company to sell to the big box channel if booked orders do not increase substantially. The letter reads: "We will not sell our brand into the big box channel but the quality of our plants even in a black box speaks for itself. We are aware that this affects your competitive advantage."
Four region-specific conference calls will be held on Dec. 7, for customers to listen and contribute thoughts on the situation.
To learn more about the company, please go to www.monrovia.com.