BFG Supply, a major distributor of horticultural and agricultural supplies based in Indianapolis, filed for Chapter 11 bankruptcy protection on August 18 in Delaware, seeking to sell all of its assets through a court-supervised auction process.
The filing covers BFG Supply and 16 affiliated companies, including subsidiaries such as Green-Tek, Greenhouse Solutions, and International Greenhouse Contractors. The company reported between $100 million and $500 million in both assets and liabilities, with funded debt totaling at least $342.5 million, split between a $43.08 million revolving facility and $299.46 million in term loans.
SSG Capital Advisors is running a going-concern sale process for some or all of the company’s businesses and assets, with a target completion date within roughly 60 days. The company intends to continue operating throughout the bankruptcy process and remains open to taking orders. Potential buyers have already expressed interest, and the Debtors are in active negotiations with parties that could serve as a stalking horse bidder.
According to the filing, unsecured creditors face zero recovery once administrative expenses and secured lender claims are paid. The largest unsecured claims are from The Scotts Company, Roxul USA, and Hawthorne Hydroponics.
BFG Supply attributes the filing to more than two years of compounding pressure rather than a single event. Acquisitions completed between 2021 and 2024—including Greenhouse Megastore, a portion of Central Garden & Pet Company’s distribution business, and V-G Supply Co.—were never fully integrated, leaving duplicative systems and an elevated cost base. Sales-organization turnover during fiscal year 2026 drove customer attrition, and consolidated revenue fell from $581.5 million in fiscal 2025 to $536.5 million in fiscal 2026. Tightening vendor credit compressed the asset-based borrowing base further, a self-reinforcing cycle that accelerated the company’s financial decline.
The company has engaged Reflect Advisors LLC to provide interim management services and appointed the firm’s Managing Director, Adam Zalev, as Chief Restructuring Officer. Pamplona Capital Management, a private equity firm, has owned BFG Supply since acquiring it from Incline Equity Partners in November 2021. Pamplona completed a $300 million recapitalization of the company in late 2025, according to Piper Sandler.
BFG Supply’s bankruptcy reflects broader challenges in the retail and supply sectors. Retail store closures hit 13,446 in 2026, tracking shows, part of a wider restructuring wave affecting distributors and retailers. The horticultural industry has also seen recent bankruptcies: Gardener’s Supply Company, a Vermont-based retailer, filed for Chapter 11 in June 2025 after pandemic-era expansion and subsequent market contraction, and TreeSap Farms, a nursery operator, filed in February 2025 with $207 million in debt before being acquired through a management buyout.
The company operates three owned facilities in Danville, Illinois; Kalamazoo, Michigan; and Simcoe, Ontario, along with interests in 16 leased warehouse, distribution, and showroom locations across the United States and Canada. Safeway closes more stores as Albertsons restructures after failed Kroger deal, demonstrating the pressures facing larger distributors and retailers navigating integration challenges and market shifts.
The company is also seeking court approval for a proposed debtor-in-possession facility of up to $55 million to fund operations during the bankruptcy process. Additional workstreams include SB360 Capital Partners and Tiger Capital Group handling liquidation of inventory, accounts receivable, and equipment, while A&G Realty Partners markets the company’s owned and leased facilities.
BFG Supply has more than 50 years of history in the North American horticultural industry and serves professional horticulture, lawn and garden, and controlled environment agriculture customers across thousands of locations. The company canceled its planned 2026 trade shows, including Cultivate and other industry events, as a result of the filing.
Sources
- HortiDaily — detailed filing information, debt structure, acquisition history, and restructuring workstreams
- Securitas Global — debt figures and unsecured creditor recovery analysis
- Garden Center Magazine — filing date and unsecured claims information
- Greenhouse Grower — official filing confirmation in Delaware
