Smith & Hawken

Highlights

• All retail inventory and fixtures across 56 stores were sold and the recovery values were maximized while protecting the reputation of the parent company.

• The sales period was elongated so as to prevent disruptions along supply chain.

• DJM Realty successfully terminated all leases and achieved savings above the retailer’s expectations.

The Scotts Miracle-Gro Company was at a crossroads regarding the future of their Smith & Hawken brand. For months, they had been exploring the relative merits of an immediate sale of the business as a going concern versus an orderly wind-down. After conducting a strategic exploration with Gordon Brothers Group, the company concluded that an orderly wind-down of the business was the best course of action.

To help Scotts Miracle-Gro Company overcome economic and operational challenges, Gordon Brothers Group’s Retail Division developed an elongated wind-down strategy that maintained vendor commitments and addressed landlord concerns while protecting the reputation of the parent company. Working closely with Smith & Hawken’s operating division, Gordon Brothers Group’s solution allowed for seamless on-order and distribution center merchandise flow. Additionally, Smith & Hawken’s human resources department handled sensitive employee issues and the finance group adhered to agreed upon expenses and reporting requirements.

DJM Realty, Gordon Brothers Group’s real estate affiliate, was retained to dispose of the entire Smith & Hawken real estate portfolio. DJM Realty negotiated lease terminations with landlords and marketed properties to reassign the leases. In an effort to find replacement tenants, DJM Realty marketed the properties nationally through different media outlets including advertisements, tradeshows and direct mail campaigns. DJM Realty completed the project in 4 months and achieved savings above retailers’ expectations.