In 2016, the largest gardeners supply chain in the US, Gardeners Supply, said it would buy out its competitor, the Greenhouse Gardeners, for $300 million.
That was more than triple its original asking price.
In 2018, Garden-a-Garden, the market leader, reported a $30 million loss, according to a regulatory filing.
This year, the two companies announced a $400 million merger.
The deal is supposed to generate $1 billion in annual sales for the companies.
But in the last three months of 2017, the companies reported an additional $9.3 million loss.
“It’s a significant blow for us and it’s a loss for our shareholders,” Greenhouse president, Jim Stoll, told Recode.
“We had been on a trajectory of growth and a lot of that was through the direct channel.”