Oregon-based Harry & David Holdings Inc., known for its catalogs of upscale food items and fruit baskets, filed for bankruptcy due to high debt. The company filed for Chapter 11 bankruptcy, which allows them to reorganize, cut debt and continue operating. On the documents, Harry & David listed nearly $500 million in debt, including $200 million in bonds.
Two brothers, Harry and David, took over their father's pear orchards following his death in 1914. They introduced their highly popular "fruit of the month" club in 1938 and began giving fruit as gifts during the Great Depression.
Part of the trouble for the company comes from low-priced Internet competition. The company reported a net loss of $39.2 million for the fiscal year that ended in June. Importantly, the catalog and 70 stores nationwide will continue to operate as usual.