D. Landreth Seed Co., a Pennsylvania operation that dates to 1784 and bills itself as the oldest seed company in America, faces an uncertain future as a Friday fundraising deadline approaches and the threat of closure looms.
Owner Barbara Melera said D. Landreth Seed Co. is deeply in debt and has until Friday to pay back a $250,000 note to one investor that was due in 2009. As of Thursday morning, the company had raised about $120,000, largely through a frenetic Facebook campaign to sell $5 catalogs.
"Our accounts have been garnished because I haven't been able to pay back legitimate debt," Melera said. "If we don't figure out how to pay these notes back soon, we have no access to operating capital and we will have to close."
The desperation has been evident on Landreth's Facebook page, where the company announced that it was trying to sell 1 million catalogs to pay off the $250,000 note and other debt. Melera's plan was to take orders and then, based on customer interest, print an appropriate number of catalogs to minimize waste. She said 1 million catalogs would cost about $3.5 million to print and produce a profit of $1.5 million -- enough to cover what the company owes various parties.
The catalog is filled with hand-drawn illustrations (shown above), color photographs and articles from the 1800s. "It is filled with stuff that you will never see anyplace else," Melera said. "Articles written in the 1800s about creating a family kitchen garden or how to build a forcing frame because most Americans couldn't afford a greenhouse at that time."
When Melera took over Landreth in 2003, the former investment banker thought she could turn the company around in three to five years. She said it actually took seven years to make an annual profit.
One key factor Melera hadn't anticipated: the cost in modernizing the company's equipment.
"There were no computers, no website or copy machines," Melera said. "They printed labels by typing them individually on a Smith Corona typewriter. They did their accounting on index cards."
She has been optimistically waiting for some organization -- a foundation, perhaps -- to step forward and "buy 10,000 catalogs and distribute them to their friends and fans."
Meanwhile, the Facebook campaign and resulting messages spreading through social networks have played out as a separate drama, eliciting not only suggestions on how Landreth could raise money, but also attacks on the investor behind the $250,000 garnishment and even some criticism of Melera's management of the company and the fundraising campaign.
Attempts to reach the investor, Liz King, were unsuccessful, and her attorney did not return a call seeking comment.
Melera, an inveterate gardener, said she was drawn to the Pennsylvania company because of its historical significance. According to company history, it introduced the first zinnia seed for sale in the United States in 1798 as well as the first white potato (1811), first Bloomsdale spinach (1826) and first tomato seeds in America (1820).