PlanetArt will acquire PersonalizationMall.com and Things Remembered from 1-800-Flowers.com for a cash consideration of $45 million, as part of 1-800-Flowers.com’s plan to refocus on its main brands and streamline its operations.
Major Loss Compared to Original Purchase Price
Unlike its earlier $245 million acquisition of PersonalizationMall.com less than six years ago, 1-800-Flowers.com is divesting the asset for only $45 million. The company detailed in a press release on Tuesday that this move aligns with its ongoing efforts to simplify the business and invest more deliberately in core segments.
Following completion of the sale, both PersonalizationMall.com and Things Remembered will officially become part of the PlanetArt group. PlanetArt, established in 2010, is an e-commerce leader in personalized gifts. The transaction will be executed with a total cash payment of approximately $45 million, as confirmed in the announcement.
Future Collaboration to Retain Product Selection
Even though 1-800-Flowers.com will relinquish ownership, the company anticipates that PlanetArt will establish a commercial partnership, allowing select PersonalizationMall.com merchandise to remain available for 1-800-Flowers customers. This arrangement is expected to let consumers continue accessing certain personalized gift options through the familiar online platform.
According to CEO Adolfo Villagomez, selling PersonalizationMall.com gives 1-800-Flowers the opportunity to focus its portfolio, reinforce its finances, and create margin for investing in strategic priorities with the best prospects for growth and improved results. Villagomez emphasized a “disciplined approach” to evaluating whether to maintain direct ownership or build brand partnerships, based on where each model adds more value.
History of Acquisitions and Previous Ownership
The purchase and resale of PersonalizationMall.com and Things Remembered follow earlier ownership changes. In 2020, 1-800-Flowers bought PersonalizationMall.com from Bed Bath & Beyond for $245 million, after Bed Bath & Beyond secured a court mandate forcing the deal to go through, as 1-800-Flowers cited difficulties caused by the pandemic to pause the transaction.
Things Remembered’s transition into 1-800-Flowers’ portfolio occurred about three years ago when its online business was acquired. Previously, the brand was sold to Enesco after seeking Chapter 11 bankruptcy protection roughly four years before 1-800-Flowers’ acquisition. These brands enhanced 1-800-Flowers’ customized gifting range with jewelry, corporate gifts, home décor, and drinkware.
Sale Driven by Financial Strategy
Recent financials point to underlying reasons for the decision. In the most recently reported quarter, 1-800-Flowers experienced a 12.9% drop in total consolidated revenues year-over-year, falling to $293.1 million during the fourth quarter, as disclosed earlier this month. By selling these units, the business aims to restore profitability and streamline focus amid persistent e-commerce sector obstacles.
With this deal, 1-800-Flowers will have more capacity to pursue key growth areas, while PlanetArt looks to expand its footprint in the online personalized product marketplace.