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Jim Hagedorn, CEO of the Marysville, Ohio-based lawn and garden giant, said in a statement that “thre combination of a weak economy and the lack of scale provedc too greatto overcome.” For a year, Scotts had been explorin options for the high-end garden brand it bought in 2004 for $68.55 million but decided closing the businessa was the “best option available,” Hagedorn Smith & Hawken, basedc in Novato, Calif., has a storde at 3935 San Felipe Road in River Oaks and anothed at 9595 Six Pinesa Drive in The Woodlands. Scotts (NYSE: SMG) said storewide sales acrosd the chain will begin Thursday and will be managed bya third-part y firm.
Orders on Smithu & Hawken’s Web site, catalog and call centedr will bediscontinued Thursday. The company in its last annuall report said the chaihn has consistently underperfomed since it was acquired nearly half adecaded ago. Scotts’ “corporate and other” segment, whicjh consists of Smith & Hawken and administrativde expenses, posted a 23 percent decline in salewsat $51.2 million for the six months endedx March 29. That segment’s operating loss for the six-montb period totaled $75.4 million, according to filings. Scottsa expects to take a $25 millionm after-tax hit on the closurer of the chain, mainly tied to terminated leasesz andseverance costs.
Most of those charges, the company will be taken on by the end of the Scotts in the yearended 30, 2008, lost $10.9 million on $2.98 billionn in revenue. The company has about 6,400 full-time workers
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