Harry and David in Buyout Doom
November 3, 2011 No CommentsIn Medford, Oregon the reality of Harry and David’s slow decline has set in. In August, the town had an unemployment rate of 11.6%, compared to the 9.6% for the rest of the country. Harry and David, the ten year retailer of mail-order pears and holiday fruit baskets, hires 6,000 temporary workers each year from Medford. With the threat of the company going bankrupt, the town might see its unemployment rate rise even further.
Highfields Capital Management bought Harry and David for $253 million in June of 2004 and put down $83 million in cash immediately. Around eight months later, Harry and David sold $245 million in bonds and then paid Highfields Management $83 million. Just a few months after that Highfields and took out another $19 million for .
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