Nurserymen's Exchange in Half Moon Bay, Calif., has filed for Chapter 11 bankruptcy. The Mercury News reports that the family-owned company intends to remain in operation, but is restructuring, according to company CEO Jack Pearlstein. The newspaper said the wholesale indoor pot plant grower will sell its operations to an investor in the next 60 days. An additional 28 acres of excess, developable land will also be sold for $8 million.
The newspaper said the company has borrowed more than $15 million from Wells Fargo, to pay off debts. It also owes $9.4 million to a variety of creditors, including suppliers in Hong Kong and India, as well as contractors. The company’s revenue was $62.7 million in 2010 and $51.1 million so far in 2011, according to financial documents.
The Half Moon Bay Review reports that court documents specify the company be sold within 60 days. An auction is set to occur on July 13. Creditors have until July 22 to file claims with the court.
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