BFG Supply Co. plans to sell all assets, sets date for auction

BFG Supply Co., LLC is planning to sell substantially all of its assets at auction, according to court documents from the U.S. Bankruptcy Court for the District of Delaware.

On Sept. 14, the court approved bidding procedures and set parameters for the auction. The deadline for bids is Oct. 2, and the auction will take place Oct. 6. There will be a sale hearing Oct. 14, and the deadline to consummate an approved sale is Oct. 22.

The court also authorized the designation of one or more stalking horse bidders by Sept. 28 with break-up fees capped at 3%.

A “stalking horse bid” is a binding offer to purchase some or all of the assets of a bankrupt or distressed company, contingent upon no other interested buyers placing higher bids once the auction begins. The term “stalking horse” is borrowed from hunters, and it was used to describe a scenario when hunters would hide behind their horses as they moved closer to the prey.

These bids are made by pre-approved buyers and set the baseline price so other bidders know the minimum bid that would be necessary to be competitive in the auction.

A break-up fee, typically 1% to 3% of the final purchase price, is usually paid to the stalking horse bidder if another bidder wins the auction. No fee has been set for the BFG auction, because no stalking horse has been designated yet.

BFG Supply Co. filed for Chapter 11 bankruptcy Aug. 18. Seventeen entities under the BFG brand were named in the filing, including DeCloet Greenhouse Manufacturing Ltd., Green-Tek LLC, L&L Nursery Supply, Inc. and Gard’N-Wise Distributors, Inc.

BFG served as one of the largest independent wholesale horticulture suppliers, with 15 locations and more than 1.5 million square feet of warehouse space. Before its Chapter 11 filing, the company employed 461 workers in the U.S. and Canada.

The court entered the bidding procedures order on Sept. 14, granting the bidding procedures relief sought in the Aug. 18 sale motion.

SSG Advisors, LLC is the investment banker that will field requests and receive bids. SSG has been conducting a marketing and sale process for the debtors’ businesses and assets on a going-concern basis.

The auction will be held Oct. 6, 2026, at 10 a.m. ET at the Wilmington, Delaware, offices of Cole Schotz, a law firm specializing in bankruptcy and corporate restructuring that has been serving as BFG's counsel. The auction could also take place virtually. However, it will only take place if the debtors receive more than one qualified bid, including a combination of bids that together constitute a qualified bid.

If a stalking horse bid is the only qualified bid, the debtors will cancel the auction and seek approval of that bid at the sale hearing, publishing a cancellation notice identifying the successful bidder and its terms on the Epiq case website within one day of the determination.