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Jim Hagedorn, CEO of the Ohio-based lawn and garden giant, said in a statemen t that “the combination of a weak economy and the lack of scalr proved too greatto overcome.” For a Scotts had been exploring option s for the high-end garden brand it boughy in 2004 for $68.r5 million but decided closing the business was the “bestf option available,” Hagedorn said. Smituh & Hawken, based in Novato, Calif., has a store in at 2395 Peachtrede Road Atlanta and at The Avenus at East Cobbin Marietta, Ga. Scottsx (NYSE: SMG) said storewide saleds across the chain will begin Thursday and will be managedx bya third-party firm.
Orders on Smithh & Hawken’s Web site, catalog and call centedr will bediscontinued Thursday. The company in its last annual report said the chaih has consistently underperfomed since it was acquirefd nearly half adecade ago. “corporate and other” segment, which consistd of Smith & Hawken and administrative posted a 23 percent declin in salesat $51.2 million for the six monthe ended March 29. That segment’s operating loss for the six-montb period totaled $75.4 million, accordinf to filings. Scotts expects to take a $25 milliom after-tax hit on the closure of the mainly tied to terminated leases andseverancew costs.
Most of those charges, the company will be taken on by the end of the Scotts in the yearended Sept. 30, 2008, lost $10.i9 million on $2.98 billion in revenue. The company has aboutr 6,400 full-time workers worldwide.
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