Scotts Miracle-Gro to shut down Smith & Hawken

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Lawn care products manufacturer The Scotts Miracle-Gro Company said it will cease operating its Smith & Hawken business by the end of the calendar year. Orders via the Web site, catalog and call center are being discontinued effective July 9, and all stores are expected to close within six months.

Scotts had initially pursued plans to sell the upscale garden products catalog and retail business.

“After discussions with several potential investors over the past 12 months, it became obvious that shutting down the business was the best option available,” said Jim Hagedorn, chairman and CEO at Scotts Miracle-Gro, in a statement. “Unfortunately, the combination of a weak economy and the lack of scale proved too great to overcome."

Scotts acquired Smith & Hawken in 2004 for $86 million. At the time, the deal was expected to provide Scotts a way to expand into new product categories while providing Smith & Hawken with the opportunity to move into mass market retailers, such as Target.

The decision to cease operating Smith & Hawken is in the best long-term interest of Scotts Miracle-Gro, which continues to expand and add jobs in its core lawn and garden business, Hagedorn said. “By eliminating the losses from Smith & Hawken, we can invest even further in driving profitable growth and enhancing shareholder value.”

The closure is being managed by third-party consultants and will begin with storewide sales on July 9. Smith & Hawken gift cards will be honored during the closure process. Smith & Hawken has 56 stores in 22 states and Washington, DC.

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