California-based Armstrong Garden Centers has purchased 15 Pike Family Nurseries retail locations for $5.2 million, the Atlanta Journal-Constitution reported last week.
Pike, a long-standing Atlanta powerhouse, filed for bankruptcy protection last November after two spring freezes and a prolonged drought cut the chain’s sales by as much as 50 to 60 percent. At one point, the 50-year-old business had revenues of $68 million, including the wholesale and landscaping garden centers — not part of the Armstrong purchase — the paper stated.
A bankruptcy judge approved the sale of the 15 retail locations, 14 based in metropolitan Atlanta and one in Charlotte, N.C., earlier this month. Armstrong will also take over lease payments for the location.
Including wholesale and inventory locations, the company is being sold for $7.9 million. Three purchasers are dividing up the wholesale side of the business: Gary Pike, son of founder William “Pete” Pike, will use one location for his wholesale interior plant and floral business, in addition to buying inventory from other stores. Geo. Schofield Co. is purchasing stone and hardscape inventory and will operate one location; and Skinner Nurseries will purchase the inventory and leases of two Pike wholesale and garden stores, the paper reports.
Armstrong CEO Mike Kunce has pledged to honor all outstanding Pike gift cards once the sale is final, according to the AJC. Outstanding gift cards total about $800,000. Customers should call before trying to redeem the cards.