Florists' Transworld Delivery

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FTD LLCFTD Logo 2019.svg
Type
Private
Industry Floral industry
Founded 1910
Headquarters Downers Grove, Illinois
, U.S.
Key people
Jeff Clarke (businessman), Executive Chairman
Owner Nexus Capital Management
Subsidiaries

Florists' Transworld Delivery

ProFlowers

Website www.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.
Contents

1 History
1.1 Going public
1.2 Acquisitions
2 Operations
3 Lawsuits
4 References
5 External links
6 See also

History

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

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 (NASDAQ: UNTD) 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

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

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]

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.[14]

In August 2019, Jeff Clarke joined FTD LLC as the new Executive Chairman.[15]
Lawsuits

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.[16][17]

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

"FTD Companies 2017 Annual Report Form (10-K)". U.S. Securities and Exchange
Commission. April 2, 2018. Retrieved September 18, 2018.
"FTD Companies | Press Release - October 1, 2019". ftdcompanies.com. Retrieved
2019-10-08.
"About Us: The History of FTD". FTD.COM. Retrieved 2008-05-20.
Slatton, Traci L. (2012-01-12). "Traci Slatton's 'How To Look At And Enjoy A Piece
Of Sculpture In 6 Steps'". Huffington Post. Retrieved 2018-02-12.
Senatore, Carol (2015). "the Bargello Museum". Florence Webguide. Retrieved 2018-
02-12.
"About Us: A letter from the President". Archived from the original on 2008-05-17.
Retrieved 2008-05-20. "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"
"Reorganized Association Links Consumers With Local Retail Florists". Business Wire
via findarticles.com. 2001-06-07. Retrieved 2008-05-20.
"Press release: United Online, Inc. to Acquire FTD Group, Inc. for Approximately
$800 Million". United Online and FTD Group. 2008-04-30.
"FTD Group, Inc. Completes Purchase of Interflora Holdings Limited" (Press
release). FTD Group, Inc. 2006-07-31. Retrieved 2006-09-23.
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 2019-10-22.
"FTD Group, Inc. Reports Fourth Quarter and Fiscal Year 2006 Results" (Press
release). FTD Group, Inc. 2006-08-09. Retrieved 2006-09-23.
Petrella, Dan. "The CEO of floral delivery giant FTD is leaving amid corporate
shake-up, restructuring". chicagotribune.com. Retrieved 2018-07-24.
Jones, Charisse (June 3, 2019). "FTD files for bankruptcy protection, but flower
deliveries will continue". USA Today. Retrieved 5 June 2019.
"Bankruptcy court approves sale of FTD North America to Nexus Capital". PE Hub.
2019-08-12. Retrieved 2019-10-22.
Nexus, FTD. "Nexus Capital Management Acquires FTD's Consumer and Florist
Businesses". www.prnewswire.com. Retrieved 2019-10-23.
"JUSTICE DEPARTMENT SETTLES CHARGES AGAINST FTD, THE LEADING FLOWERS-BY-WIRE
COMPANY, FOR VIOLATING 1990 CONSENT DECREE". United States Department of Justice.
1995-08-02. Retrieved 2008-07-03.

"F.T.D. Agrees to Settle Antitrust Complaint". The New York Times. 1995-08-03.
Retrieved 2008-07-03.

External links

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

Floral industry

vte

Illinois-based corporations

vte

Qurate Retail Group

Categories:

Companies based in DuPage County, IllinoisOrganizations based in MichiganWayne

County, MichiganRetailers' cooperatives in the United StatesFormer cooperatives of
the United StatesDemutualized organizationsDowners Grove, IllinoisPrivate equity
portfolio companiesFlorist companiesRetail companies established in 19101910
establishments in ColoradoFloral industry2000 initial public offeringsCompanies
listed on NASDAQCompanies that filed for Chapter 11 bankruptcy in 2019

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This page was last edited on 25 December 2019, at 09:57 (UTC).

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