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BFG Supply files Chapter 11, plans California layoffs

BFG Supply files Chapter 11, plans California layoffs

Money Moves Sacramento, CA local

Debt-fueled acquisitions and a revenue slide drove the horticulture distributor into bankruptcy

August 24th, 2026: WARN notices filed

Overview

Updated 2 hours ago

Thirty-nine workers at BFG Supply's California distribution sites will lose their jobs on October 25. The company filed WARN notices on August 24 — six days after seeking Chapter 11 protection in Delaware.

BFG Supply, an Indianapolis wholesale distributor of horticulture and lawn-and-garden products, spent four years and at least $342.5 million in borrowed money buying three businesses it never integrated. Revenue fell to $536.5 million in its last fiscal year, and a shrinking borrowing base cut off the inventory it needed to sell. A 60-day marketing process will decide whether the company finds a buyer or liquidates.

Why it matters

If no buyer emerges, 39 workers lose their jobs and California's garden-retail supply chain loses a wholesale distributor.

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Key Indicators

39
California workers laid off
Covers 37 in San Bernardino and 2 in West Sacramento, per WARN filings.
$342.5M
Funded debt at Chapter 11 filing
Across revolving and term loan facilities signed in November 2021.
7.7%
Revenue decline, fiscal 2025 to 2026
Revenue fell from $581.5 million to $536.5 million year over year.
62
Days of WARN notice given
Filing on August 24, effective October 25 — two days past the 60-day minimum.

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People Involved

Organizations Involved

Timeline

November 2021 October 2026

11 events Latest: August 24th, 2026 · 3 weeks ago Showing 8 of 11
Tap a bar to jump to that date
  1. Layoffs take effect

    Upcoming Workforce

    Layoffs effective at both California sites, 62 days after notice.

  2. WARN notices filed

    Latest Regulatory

    BFG files WARN notices: 37 workers in San Bernardino, 2 in West Sacramento.

  3. SSG Advisors retained

    Financial

    BFG hires restructuring advisor SSG to run a going-concern marketing process.

  4. Credit facilities amended

    Financial

    BFG adds $45M term loan, extends maturities to 2028/2029, converts interest to paid-in-kind.

  5. V-G Supply distribution acquired

    Merger/Acquisition

    BFG acquires V-G Supply's distribution business, roughly a year after the Central Garden deal.

  6. Central Garden & Pet wholesale division acquired

    Merger/Acquisition

    BFG buys a portion of Central Garden & Pet's wholesale distribution business.

  7. Greenhouse Megastore acquisition

    Merger/Acquisition

    BFG acquires Greenhouse Megastore, its first debt-financed distribution purchase.

  8. Credit facilities signed

    Financial

    BFG signs $120M ABL facility with ACF Finco and ~$299M term loans with Ares Capital.

Scenarios

1

Going-Concern Sale Closes, Business Continues Under New Owner

Likely Resolves by Nov 15, 2026

Discussed by: Chapter 11 filings note active stalking horse negotiations; SSG targets roughly 60 days for marketing

SSG completes its marketing process and a stalking horse bidder — likely a competitor or private equity firm — buys substantially all of BFG Supply's assets. The court approves the sale, the California locations either transfer to the buyer or wind down with the laid-off workers, and the horticulture distribution channel survives under new ownership.

2

No Buyer Found, Assets Liquidated

Possible Resolves by Dec 1, 2026

Discussed by: The debtor's own filing arranges a liquidation program with SB360 Capital Partners and Tiger Capital Group

Marketing fails to produce an acceptable going-concern offer. The court approves liquidation: SB360 and Tiger sell inventory and receivables, A&G Realty monetizes real estate, and the company winds down. The 39 California layoffs become permanent and the horticulture wholesaler ceases operations.

3

Partial Sale: Core Business Sold, Remainder Liquidated

Possible Resolves by Dec 15, 2026

Discussed by: Case filings describe three concurrent workstreams: going-concern sale, liquidation, and real estate monetization

A buyer acquires the core wholesale distribution business — likely the horticulture supply assets — while the liquidation consultants and real estate advisors sell the rest. Some locations and jobs transfer; others close. The company emerges smaller or is absorbed into a competitor.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

September 2017 - June 2018

Toys 'R' Us (2017-2018)

Toys 'R' Us carried more than $5 billion in debt from a 2005 leveraged buyout by KKR, Bain Capital, and Vornado. The debt load left no cash to modernize stores or compete with Amazon and Walmart, and the company filed Chapter 11 in September 2017.

Then

Holiday sales failed to revive the business; the company announced liquidation in March 2018 and closed all 735 U.S. stores.

Now

The liquidation showed that debt service can strangle a recognizable brand even when customers remain loyal.

Why this matters now

Like BFG Supply, Toys 'R' Us carried acquisition debt it could not service while operations declined, and Chapter 11 ended in liquidation rather than reorganization.

May 2017 - February 2018

Central Grocers (2017-2018)

Central Grocers, a cooperative wholesale distributor serving more than 300 independent grocery stores in the Midwest, filed Chapter 11 in May 2017. It sold assets to competitors such as Associated Wholesale Grocers and closed remaining operations.

Then

Independent grocery members had to find new wholesalers; many stores closed or switched suppliers.

Now

Showed that a wholesale distributor can fail quickly when consolidation erodes its customer base.

Why this matters now

Like BFG Supply, Central Grocers was a wholesale distributor that filed Chapter 11 amid a shifting market and ended with asset sales to competitors and liquidation.

Sources

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