FTD’s announcements last week that the company saw “lower than expected” results on Valentine’s Day and failed to meet its overall “financial objectives” for the fourth quarter of 2018, coupled with high-profile headlines about its updated SEC regulatory filing that addressed the company’s $217.7 million in unpaid debt, have generated conversation, speculation and worry around the floral industry. The questions many FTD members are asking: Will I be paid for future orders, including those on Mother’s Day? Can I expect my FTD website and POS technology to be supported moving forward? Is FTD — one of the oldest and most recognized brands in the industry — going out of business?

The short answers to those questions, according to Tom Moeller, executive vice president of the florist division at FTD: Yes, yes and no.

This week, Moeller spoke with EBrief editors, saying that competitors and “misleading news stories” have “distorted” FTD’s financial situation. “This entire situation has been an exaggeration of the facts, and we, as a company, are really upset about that, which is why we’ve been so fast to respond,” said Moeller, adding that the company has been “very transparent” about the corporate restructuring and cost-savings plan it undertook last year in large part to address that $217.7 million debt that comes to maturation in September. “We will continue to support our member florists to help them win.”

Moeller said he has personally spoken with dozens of FTD member florists in the past week to reassure them that the company, which owns entities such as Shari’s Berries, ProFlowers and Personal Creations (a line of personalized giftware), is staying the course. The company sent out a member communication last week emphasizing that “the running of our day-to-day business remains the same, with no changes to products or services…including support for your Mercury system” and promising that FTD florists “will be paid for all orders cleared through the FTD Clearinghouse Statement.”

The concern about Mother’s Day has been intense in quarters of the industry, with some retailers saying they plan to turn off Mercury for the holiday, despite those assurances from FTD that all orders will be paid. In the Philadelphia area, Scott Kremp of Kremp Florist, a longtime FTD member, said he’s been talking to industry colleagues with precisely that concern.

“The news last week came out in a way that really scared people,” said Kremp, who added he has no plans to alter his own Mother’s Day operations. “I base my level of concern off of how the executives are reacting, and the higher ups seem to have things under control. I have faith right now in the people we’re hearing from.”

Moeller acknowledged Valentine’s Day and the company’s fourth quarter had been disappointing, but, in talking about that shortfall, he cited marketing challenges related to Personal Creations, weather-related issues that affected Shari’s Berries pricing and productivity, and less-than-expected traffic from TV and radio spots at ProFlowers. Meanwhile, he added, the company actually saw FTD.com orders “well into the $80 range”— a record for the company — and “high consumer satisfaction and strong demand and sell-through” for codified products.

“The competitive environment was so intense for Valentine’s Day, but there were a lot of wins there,” Moeller said. “We were very pleased with our FTD.com, FTD florist and Interflora business.”

Moeller also addressed the company’s debt — and that looming deadline this fall. In July, as part of its restructuring and cost-savings plan, FTD announced that it had “initiated a review of strategic alternatives focused on maximizing stockholder value” — alternatives that could include a sale or merger. Privately, one florist, another longtime FTD member in the Northeast, said the high debt troubled him.

“To see them that far in debt, honestly, is heart-wrenching,” he said. “There’s a lot of negativity in the industry about wire services and order-gatherers, but personally we’ve found a way to make things work for us, by sticking to rules we set for ourselves and that work for our business. I want to see FTD succeed and for the floral industry to come together, but this news has made me apprehensive.”

SAF President-Elect Chris Drummond, AAF, PFCI, of Plaza Flowers in Norristown, Pennsylvania, said on Monday that he wasn’t surprised by the recent news, given FTD’s challenges and debt level.

“It certainly paints a dismal picture from a shareholder perspective when the debt is more than 10 times the market cap,” said Drummond. “But industry insiders understand the value in the brand. Consumers recognize the brand and FTD continues to maintain a solid network of quality florists who they support with popular products and good technology. I believe the value is certainly higher than the market cap suggests.”

The big, as-yet-unanswered question, according to Drummond: “Can FTD find a buyer willing to take on all that debt and right the ship?”

“There is significant value at FTD; a sharp investor needs to leverage that value in creative ways to succeed,” he added.

Moeller said he could not comment further on the strategic review process or the prospect of a sale, but he said FTD remains focused on its goal to successfully wrap that process by June 1.

“The of the strategic review process is that we have the debt maturing in September and need to find a way to pay it off,” he said. “Our lenders have been incredibly supportive throughout this process.” As an example, he pointed to the company’s move to amend its credit agreement this month, an effort that was reflected in that SEC filing and one that Moeller said, “gives us more flexibility to continue to successfully execute our business plans, including Mother’s Day, as well as our strategic review process.”

Those Mother’s Day plans include fine-tuning assortments now and communicating early with member florists, so that they have time to streamline production and make sourcing decisions, and also investing more in digital and social marketing on the consumer side. In addition, the company rolled out a new consumer website on Mother’s Day 2018 and is continuing to expand and develop that platform. It’s also beta testing new florist sites, which will launch in June.

“Those new sites will be more responsive, and they’ll look good on any mobile device,” Moeller said, noting that florists will be able to trade out prices and product easily and create custom add-ons in an “easy, seamless” manner.

For his own part, Moeller said he’s ready to put the headlines of the past week behind him and focus on the future.

“I’ve spoken with so many people in the past week and those conversations have been the real silver lining,” he said. “There are a lot of people out there who want to help FTD succeed.”

Mary Westbrook is the editor in chief of Floral Management magazine.