Ciccolella ceases buying at FloraHolland

After ABN Amro bank announced that it would no longer guarantee the payments of Ciccolella, the second-largest player in the European flower and plant industry applied for a moratorium of payments. We now understand that the company has filed for bankruptcy. We regret this situation because it has long been a valued customer on our international trading platform. Ciccolella is a large buyer with a turnover of more than 200 million Euro, but this situation means that it will make no more purchases through the clock and Connect.

Growers who have delivered to Ciccolella and supplied a delivery form to the auction on time are guaranteed their money, thanks to the payment guarantee that FloraHolland offers. All interested members, growers and staff have been notified. Meanwhile, FloraHolland employees have been asked to help our members with this situation.

It goes without saying that FloraHolland has monies outstanding with customers at any one time, including with Ciccolella. However, we have sufficient securities in place for the 14-day credit of 5 million Euro, meaning the risk for FloraHolland is limited.

The impact of Ciccolella's possible bankruptcy on our growers is different. At the very least, it means that forward contracts will not be honoured. In the past, we have seen other customers absorb the trade of a bankrupt company. This is a competitive market, so we expect it to stabilise within a reasonable period.

Having said that, there have been more and more bankruptcies and acquisitions over the last few years. It's a tough market with low margins, especially in the retail segment in which Ciccolella is active. The Ciccolella group includes Diskoflora, FPP Bloemen, Top Flora International, Disva Garden Center, BBE Bloemen and Zurel Flowers.

Last Thursday, FloraHolland informed its growers via a debt alert that is had been forced to withdraw Ciccolella's licence with immediate effect. The auction did this after ABN Amro announced that it would no longer guarantee the payments of Ciccolella. From that moment on, delivery forms for this buyer would no longer be settled. Growers who have reserved lots with this buyer can write or speak to the contact person at FloraHolland.

Source: Floraholland