Florists' Transworld Delivery

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FTD LLC
TypePrivate
IndustryFloral industry
Founded1910
Headquarters,
U.S.
Key people
Charlie Cole, CEO
OwnerNexus Capital Management
Subsidiaries
Websitewww.ftdcompanies.com,www.ftd.com
Footnotes / references
[1]

FTD LLC[2] (FTD), also known as Florists' Transworld Delivery, is a floral wire service, retailer and wholesaler based in Downers Grove, Illinois, in the United States. FTD was founded as Florists' Telegraph Delivery in 1910, to help customers send flowers remotely on the same day by using florists in the FTD network who are near the intended recipient. It was based in Detroit, Michigan and then moved to Southfield, Michigan prior to its move to Downers Grove. It originated as a retailers' cooperative and began a process of demutualization in 1994. It operates two main businesses: The Consumer Business sells flowers and gift items through its websites and The Floral Business sells computer services, software and even fresh cut flowers to FTD and Interflora affiliated florists.

Retail Florist Association (formerly Extra Touch Florist Association and FTD Association) is a trade association that originated as the member education, advocacy and quality assurance arm of FTD, breaking formal ties with FTD in 2001.

FTD processes orders through the Mercury Network, its international telecommunications service.

History[edit]

On August 18, 1910, thirteen American florists led by John Valentine, a Denver lawyer and floral company owner[citation needed] agreed to serve each other's out-of-town customers by exchanging orders via telegraph. This group was called Florists' Telegraph Delivery. In 1914, the company adapted Mercury by sixteenth century Flemish sculptor Giambologna for its Mercury Man corporate logo, to emphasize the speed of delivery. In 1965, it began offering international order, and took the name of Florists' Transworld Delivery.[3][4][5]

Going public[edit]

In 1994, FTD began a process of demutualization, acquiring control of the business, and ownership of its assets. On December 19, 1994, a precursor to the FTD Corporation, a private, for-profit company Perry Capital, acquired FTD, which then divided FTD into two organizations: FTD Incorporated, a for profit corporation, and FTD Association, a non-profit trade association.

FTD Incorporated retained FTD's businesses, including the Mercury Network and the clearinghouse, and controlled FTD Association's rules, regulations, and bylaws. The FTD Association retained member education, advocacy and quality assurance.

In 2000, FTD Incorporated held an initial public offering of FTD.com on the NASDAQ. FTD Group was listed on the NYSE in 2005. The company is based in Downers Grove, Illinois.

In 2001, the FTD Association separated from FTD Incorporated, terminated all contracts, and, in exchange for $14 million, renamed itself Extra Touch Floral Association, and later, Retail Florist Association. It is based in Livonia, Michigan.[6][7]

In 2008, United Online (NasdaqUNTD) announced a merger agreement with FTD Group, valued at $800 million.[8] The acquisition was completed and shares of FTD ceased to trade on the NYSE August 26, 2008.

In 2013, FTD is spun off from United Online resulting in FTD Companies, Inc.[1] becoming an independent, publicly traded company listed on NASDAQ.

In July 2019, FTD's North American and Latin America consumer and florist businesses were purchased by Nexus Capital Management and thus have become a privately owned company and no longer will be a publicly traded company.,

Acquisitions[edit]

In 1994, FTD was acquired by Perry Capital Corporation from the florists and converted into a for-profit corporation.

On July 31, 2006, FTD, Inc. announced its acquisition of Interflora Holdings, a UK-based sister co-operative that offered the FTD network in Britain and Ireland under the Interflora brand. "The acquisition, first announced on July 7th, 2006, was made for a purchase price of GBP 66 million, or approximately [US]$122 million, excluding transaction costs." [9]

In 2012, Interflora acquired Flying Flowers, Flowers Direct and Drake Algar in the U.K.

In July 2019, FTD's North American and Latin America consumer and florist businesses were purchased by Nexus Capital Management and are now known as FTD LLC.[10]

Operations[edit]

Fiscal year 2006 revenues grew 6.2% to $465.1 million, compared with revenues of $437.8 million for fiscal 2005. This revenue growth was driven by an 11.6% increase in revenue in the Consumer Segment.[11]

The Mercury Network, the electronic network used by FTD, processes about fifteen million orders annually, through about 50,000 FTD affiliates in 154 countries, of which about 20,000 are in the United States and Canada.

On July 19, 2018, it was announced that CEO John Walden would be stepping down as the company began restructuring.[12] Scott Levin took over as president and CEO.[13]

In June 2019 FTD filed for Chapter 11 bankruptcy protection while it restructures; all customer deliveries will continue in the meantime. The company said it has a tentative deal to sell its flower delivery business in North and South America to Nexus Capital. It has also received offers to buy two subsidiaries: Personal Creations and the candy delivery business Shari's Berries.[13] Shari's Berries was acquired in 2019 by 1-800-Flowers.com.[14]

In July 2019, the forgoing transactions were consummated for FTD's floral consumer businesses and FTD Companies became FTD LLC. with the purchase of FTD and ProFlowers by Nexus Capital Management.[15]

In August 2019, Jeff Clarke joined FTD LLC as the new Executive Chairman.[16] In March 2020, Charlie Cole was named CEO.[17]

Lawsuits[edit]

FTD had obtained a near-monopoly position in its market. It has been sued several times by the United States Department of Justice to ensure it does not engage in non-competitive behavior, namely prohibiting members from affiliating with competing flowers-by-wire services. FTD entered into consent decrees with the Department of Justice after 1956, 1969, and 1990 suits.[18][19] Florists' Transworld Delivery (FTD), sued its competitor ProFlowers for false advertising in August 2005. The suit focused on ProFlowers' claim to ship "direct from the fields" with "no middlemen". Stating that the lawsuit was "without merit", ProFlowers brought counterclaims against FTD. The lawsuit was settled a year later out of court.[citation needed]

References[edit]

  1. ^ "FTD Companies 2017 Annual Report Form (10-K)". U.S. Securities and Exchange Commission. April 2, 2018. Retrieved September 18, 2018.
  2. ^ "FTD Companies | Press Release - October 1, 2019". ftdcompanies.com. Retrieved October 8, 2019.
  3. ^ "About Us: The History of FTD". FTD.COM. Retrieved May 20, 2008.
  4. ^ Slatton, Traci L. (January 12, 2012). "Traci Slatton's 'How To Look At And Enjoy A Piece Of Sculpture In 6 Steps'". Huffington Post. Retrieved February 12, 2018.
  5. ^ Senatore, Carol (2015). "the Bargello Museum". Florence Webguide. Retrieved February 12, 2018.
  6. ^ "About Us: A letter from the President". Archived from the original on May 17, 2008. Retrieved May 20, 2008. Retail Florist Association was founded in 2001 (as Extra Touch Floral Association) to promote and support growth, education and networking for the individual brick and mortar retail florist
  7. ^ "Reorganized Association Links Consumers With Local Retail Florists". Business Wire via findarticles.com. June 7, 2001. Retrieved May 20, 2008.
  8. ^ "Press release: United Online, Inc. to Acquire FTD Group, Inc. for Approximately $800 Million". United Online and FTD Group. April 30, 2008.
  9. ^ "FTD Group, Inc. Completes Purchase of Interflora Holdings Limited" (Press release). FTD Group, Inc. July 31, 2006. Retrieved September 23, 2006.
  10. ^ Inc, FTD Companies. "FTD Companies, Inc. Receives Court Approval for the Sale of the FTD North America and Latin America Consumer and Florist Businesses and the Sale of Shari's Berries". www.prnewswire.com. Retrieved October 22, 2019.
  11. ^ "FTD Group, Inc. Reports Fourth Quarter and Fiscal Year 2006 Results" (Press release). FTD Group, Inc. August 9, 2006. Retrieved September 23, 2006.
  12. ^ Petrella, Dan. "The CEO of floral delivery giant FTD is leaving amid corporate shake-up, restructuring". chicagotribune.com. Retrieved July 24, 2018.
  13. ^ a b Jones, Charisse (June 3, 2019). "FTD files for bankruptcy protection, but flower deliveries will continue". USA Today. Retrieved June 5, 2019.
  14. ^ "1-800-FLOWERS.COM, Inc. Completes Its Purchase of the Sharis Berries Brand". Business Wire. Retrieved March 23, 2021.
  15. ^ "Bankruptcy court approves sale of FTD North America to Nexus Capital". PE Hub. August 12, 2019. Retrieved October 22, 2019.
  16. ^ Nexus, FTD. "Nexus Capital Management Acquires FTD's Consumer and Florist Businesses". www.prnewswire.com. Retrieved October 23, 2019.
  17. ^ LLC, FTD (March 26, 2020). "FTD, LLC Announces Appointment of New CEO". GlobeNewswire News Room. Retrieved April 16, 2021.
  18. ^ "Justice Department Settles Charges Against FTD, The Leading Flowers-By-Wire Company, For Violating 1990 Consent Decree". United States Department of Justice. August 2, 1995. Retrieved July 3, 2008.
  19. ^ "F.T.D. Agrees to Settle Antitrust Complaint". The New York Times. August 3, 1995. Retrieved July 3, 2008.

External links[edit]

  • FTD, Inc. – florist trade business
  • FTD.COM – consumer direct sales
  • www.etfa.org – Retail Florist Association corporate website (separated from FTD in 2001)

See also[edit]