The online flower giant is seeking to expand its menu to include gift baskets and gourmet foods by acquiring Harry & David Holdings for $142.5 million in cash. The sale of the company to 1-800-FLOWERS.COM closed in September 2014.

Bankruptcy

HDH emerged from six months in Chapter 11 bankruptcy protection in September 2011 after the court approved its reorganization plan in August.

Operations

HDH's wholesale business supplies products, such as Moose Munch popcorn and other snacks, to retail clubs, department stores, grocery retailers, and other mass merchants. The wholesale channel helps to boost the company's sales during the non-holiday selling season. Indeed, more than 60% of the company's sales are made between October and December.

HDH owns about 3,400 acres of land in Oregon where it grows it pears and operates a 54,000-square-foot bakery, confectionery and chocolate plant. The company grows or makes about 85% of its products.

Sales and Marketing

Harry & David Direct Marketing takes orders online, at two year-round call centers, and a third seasonal call center.

Financial Performance

HDH rings up nearly $400 million in sales annually.

Strategy

As the popularity of online shopping increases, HDH is mailing far fewer catalogs than in the past as it works to move its customers to online ordering. The company estimates it has saved more than 9 million pounds of paper since it began the campaign in 2003. HDH also emphasizes its conservation and recycling efforts, in offices and at its agriculture operations.