1-800-Flowers Offloads PersonalizationMall.com and Things Remembered
1-800-Flowers has announced it will divest PersonalizationMall.com and Things Remembered to PlanetArt for a sum of approximately $45 million in cash. The deal represents a substantial decline from the $245 million initially paid for PersonalizationMall.com roughly six years ago.
Strategic Refocusing
This move is part of 1-800-Flowers’ broader strategy to streamline operations and focus on its primary brands in a bid to boost profitability. As part of this agreement, PlanetArt will make a commercial arrangement to allow 1-800-Flowers to continue marketing certain products from PersonalizationMall.com.
CEO’s Vision for Future Growth
CEO Adolfo Villagomez explained the sale of these assets as a way to refine the company’s business portfolio, solidify financial standing, and free up resources to invest in strategic opportunities aimed at improving performance and achieving long-term growth. Villagomez emphasised that the company is committed to making strategic decisions between ownership and partnerships for effectively serving customers.
Historical Context
In recent history, PersonalizationMall.com was acquired by 1-800-Flowers in 2020 for $245 million from Bed Bath & Beyond, following legal action to enforce the purchase amid the pandemic. Approximately three years ago, 1-800-Flowers also acquired the online division of Things Remembered after its prior sale to Enesco during bankruptcy proceedings.
Both these brands will now come under the umbrella of PlanetArt, an e-commerce company established in 2010 that focuses on personalised merchandise.
Financial Performance
Amid these strategic shifts, 1-800-Flowers reported a 12.9% decrease in total consolidated revenues for the fourth quarter, amounting to $293.1 million. This underscores the company’s need to streamline and focus on core areas to revitalise financial performance.
Reporting based on coverage first published by retaildive.com.