by David Flint
Henry J. Seagroatt originally came to Berlin in 1913 to operate the greenhouses on the Arthur Cowee farm. Starting his own company in 1921, he built most of his own greenhouses during the Great Depression, and yet his floral business expanded all through the 1930s. But today’s bad economy is a different story. Officers of the Seagroatt Companies, deciding they could go no further, closed operations effective at the end of business last Friday.
General Manager Stephen Riccardi said that the last few years have been a tough struggle. Faced with worldwide competition in the global economy, it became more and more difficult to do business profitably here. Even companies in Canada, probably aided by government subsidies, were able to undercut prices. The company, he said, had tried to downsize, laying off a large block of employees about a year ago, but they were not able to downsize fast enough. Then the current recession hit and sales decreased further. After looking at first quarter results, he said, “We thought it prudent to close down and liquidate our assets in an orderly fashion, settle up with our vendors and creditors and look for a new life, a new career.”
When his grandfather was building up the company, Riccardi said, he didn’t have to deal with worldwide competition. Flowers brought a premium price up until the mid 1980s. Growing roses was especially profitable. Riccardi noted that there used to be about 200 families in this country growing roses. They are all gone now, except for maybe four or five. Seagroatt’s basically got out of the rose business a little over ten years ago. After that, he said, they were never quite able to find their niche with cut flowers or other innovative products. The products, Riccardi said, were good and well received but it became impossible to compete with the prevailing lower prices.
Riccardi said he and his brothers, President/CFO Albert and Vice Presidents Phillip and Michael and Albert’s son Chuck, Manager of the Albany operation, are mainly concerned now about their employees and their families and the task of helping to find new employment for them. The Riccardis have been impressed with the attitude of these people. “We knew we had good employees,” Stephen said, “but the extent to which they have gone to help us bring this to an orderly conclusion is most extraordinary.”
The Companies include the Seagroatt Floral Company in Albany and the Seagroatt Wholesale Florist in Cromwell, CT, as well as the Henry J. Seagroatt Company in Berlin. The Berlin operation has been operating with a skeleton crew lately and currently comprises fewer than ten people including management.
Local people can take advantage of a cash and carry going out of business sale going on now, but it will take some time to liquidate the company, Riccardi said.
Notifying customers of the closing last Friday, Albert Riccardi stated, “We will truly miss all of you and the common interest of making the world a more beautiful and enjoyable place with the help of flowers.”