FTD spent two years fixing its florist network after bankruptcy, then widened into gifting

Modern Retail reports that FTD filed for bankruptcy in June 2019, after a $430 million acquisition of ProFlowers in 2014 that involved $200 million of debt, and while startups like Bouqs, Farmgirl Flowers and Urban Stems took share. It emerged in August 2019, bought by an affiliate of private equity firm Nexus Capital Management. Charlie Cole became CEO in March 2020, just as the pandemic hit.

Cole says nearly two years went on fixing 'nuts and bolts', above all relations with more than 9,000 member florists. The website showed arrangements florists in some places could not make because of seasonality and inventory, so after hundreds of hours of listening sessions FTD changed displays to seasonal arrangements, added flower suppliers in Colombia and Ecuador and reworked ordering from SKU design downward. Net promoter score had been 4.

Only then did FTD rebrand, in September 2021, and move its site to Shopify, which let it launch MercuryOnline in March 2022 so florists could set delivery fees, cut-off times and pickup. With that network, it added partnerships with Baked by Melissa and Milk Bar and beta-tested alcohol delivery with Thirstie, aiming to become a 'holistic gifting company' as the fastest-growing gifting categories were not flowers.

By late 2022: net promoter score from 4 to the mid-40s, refunds down 10% year on year, non-floral revenue up 50%, Thanksgiving order units up 150%.

Most post-bankruptcy problems, Cole says, were caused by FTD's own bad systems and information sent to member florists.

Listening sessions with florists led to concrete changes: seasonal displays and new supplier access.

The company waited until the experience, brand and site were right before it started to amplify.

The florist network gave FTD same-day local fulfilment that dropship startups lacked.

After a collapse, fix the plumbing and the partners' trust before you amplify the brand or chase new categories.

As of December 2022, Cole expected more growth from snacking and alcohol, was seeking partnerships including a floral wall at the Kentucky Derby and AARP member discounts, and hoped to roll out alcohol delivery nationwide by early 2023. The article quotes a restructuring lawyer noting that some companies end up in a second bankruptcy if the plan fails; it reports no later outcome.