Ciccolella SpA has divested its international division and will focus on ornamental plant production and solar power generating greenhouses in its home country Italy and other countries, the company states. The selloff was necessary as a result of a precarious financial position.

External experts and surveyors will now assess the value of the sold Ciccolella Holding International BV and its properties, after which Stichting Belangenbehartiging CHI – the purchasing party – will make due payments to Ciccolella. The exact details of the sales contract remain unclear as yet, however.

Meanwhile, Dutch flower auction FloraHolland has sent a debtor alert to its suppliers warning growers that the bank cannot guarantee that its client Ciccolella is able to fulfill its financial obligations. FloraHolland therefore advises growers to no longer sell their flowers and plants to Ciccolella.

Two weeks ago, an internal mail which was sent to Top Flora (Ciccolella’s flower factory) employees announced that their January salary was postponed until further notice, reinforcing the image of a company in severe financial difficulties.

It is suggested that Ciccolella has accrued debt of a minimum of €25 million as a result of the trade. It is possible, however, that the burden of its debt will end up resulting in an even much higher amount.

Ciccolella is one of the largest players in trading flowers and plants on the European market, with a turnover of € 346 million in 2010. The company is active in both the retail and wholesale segments of the market. Its parent company is listed at the stock exchange of Milan.

Ciccolella International consists of FPP Bloemen, Diskoflora, Top Flora International, Disva Garden Center, BBE Bloemen en Zurel Flowers.

 

Sources: FCI, FloraHolland, Yahoo Italy  15 February 2013